The Pakistani rupee continued its upward trajectory against the US dollar during the week’s last trading session, with the local currency gaining value in both the open market and inter-bank.
As per the state bank of Pakistan (SBP), the rupee held steady and trading within the range of 282.19 to 282.69 in the interbank market.
Currency experts attribute this stability to an increased supply of US dollars in the interbank sector, which has positively influenced open-market exchange rates.
The Pakistani rupee was quoted at 282.75 for selling and 280 for buying in the open market, representing a notable improvement compared to the previous day’s closing rates of 284 for selling and 281 for buying, as reported by the Exchange Companies Association of Pakistan (ECAP).
This development follows a series of measures undertaken by the State Bank of Pakistan (SBP) to stabilize the Pakistani currency. Last month, the SBP introduced a comprehensive set of “structural reforms” aimed at regulating Exchange Companies (ECs) and curbing the dollar’s ascent.
Simultaneously, the caretaker government implemented administrative actions to combat currency smuggling and hoarding. As a result, authorities conducted countrywide raids, leading to the closure of numerous illegal currency exchanges and the confiscation of foreign currency worth millions.
The timing of the rupee’s resurgence is particularly significant as Pakistan gears up for the next review of its Stand-By Arrangement (SBA) with the International Monetary Fund (IMF), scheduled for November. A stable and appreciating currency is typically viewed favorably in IMF negotiations, potentially strengthening Pakistan’s position.