PKR ends 28-day upward flight, depreciates slightly in interbank

The Pakistani rupee (PKR) ended its 28-day streak of gains against the US dollar, depreciating 0.07% during Tuesday's interbank trading session.

The local currency settled at PKR 277.03, down by Re0.20 from the previous day's closing rate of PKR 276.83, according to the State Bank of Pakistan (SBP).

This change follows a month-long period during which the PKR had demonstrated consistent strength, partly attributed to a crackdown on illegal dollar outflows and a series of government-administered measures.

However, the Pakistani rupee showed some improvement against the greenback in the open market. Currency dealers quoted selling rates at 276.50, with buying rates at 273.50.

It's worth noting that the International Monetary Fund (IMF) has set stringent benchmarks, with one requirement being that the gap between rates in the inter-bank and open markets should not exceed 1.25%.

PKR’s 28-day consecutive upward flight 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.