In the interbank market on Tuesday, the Pakistani rupee exhibited a notable trend of strengthening against the US dollar, with its exchange rate dipping to below Rs290.
According to details, at mid-day, the rupee was trading at 289.73 against the US dollar, representing an increase of Rs1.13. Whereas, in the open market, the dollar was trading for Rs292, compared to the previous day’s rate of Rs293.
This appreciation of the rupee follows a trend that started when the interim government cracked down on illegal dollar trading earlier in the month. The rupee had also appreciated by 0.31 percent on the previous day, settling at 290.86.
Analysts attribute this surge in the rupee’s value primarily to administrative measures taken by the government. These measures seem to be addressing speculative elements that were contributing to the rupee depreciation.
Analysts suggest that if the current trend continues and the Afghan border remains closed, the rupee is likely to appreciate further in the future.
The rupee has made a significant recovery, rising nearly 6 percent since reaching a record low of 307.1 against the US dollar in the interbank market on September 5.
Internationally, the US dollar has been strong, standing at 10-month highs against a basket of major currencies. This strength is supported by US bond yields reaching 16-year peaks.