The Pakistani Rupee continued to strengthen against the US dollar, recording a 0.43% gain in the inter-bank market on Wednesday.
The rupee was observed at 279.30 during the intraday trading session, marking a notable increase of Rs1.21 against the greenback.
This positive trend extended to the open market as well, where the Pakistani rupee saw an upward movement against the US dollar. Currency dealers reported selling rates at 279 and buying rates at 276, accommodating the needs of various customers.
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.
