The Pakistani rupee (PKR) remains on a remarkable upward trajectory, appreciating by 5 rupees against the US Dollar in the open market during intraday trading on Monday.
Currency dealers said the rupee was quoted at 281.50 for selling and 278.75 for buying purposes for customers.
In the interbank market, the PKR has gained around 1 rupee against the US dollar during intraday trade compared to its previous closing rate of PKR 282.68 per USD. At 12:30 p.m., the rupee was hovering at 281.40, an increase of Rs1.29, in the inter-bank.
Last week, the Pakistani rupee demonstrated resilience by gaining 1.8% over five trading sessions, closing at 282.69 against the US dollar in the interbank market. This has extended its winning streak to 22 consecutive sessions, bringing it to its highest level since July.
Notably, in the month of September, the PKR’s performance was remarkable, with a gain of 6.19% against the US dollar, marking its second-best performance in percentage terms since 2014. This achievement earned it recognition as the best-performing currency in the world for the month.
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.
