The Pakistani Rupee (PKR) has continued its remarkable resurgence againstthe US Dollar (USD), displaying a sustained upward trend in the interbankmarket. This noteworthy performance unfolded on Wednesday when the localcurrency recorded a substantial gain of Rs. 1.05 against the greenbackduring the day’s trading session.
This translated to a 0.36 percent appreciation of the PKR against the USD,culminating in its closing rate of Rs. 288.75 for the day. It’s worthnoting that this follows another impressive gain of Rs. 1.06 against theUSD recorded at the close of the previous trading session, where the PKRhad settled at Rs. 289.80.
The resilience of the Pakistani Rupee is particularly evident whenconsidering its performance throughout the current month, where it hasappreciated by a remarkable 6 percent against the USD. This resurgencecomes as a surprise given the significant depreciation of the PKR by 21.58percent since the beginning of the year, and a more modest 0.96 percentdepreciation since the commencement of the current financial year.
A particularly bleak point was reached on September 5th when the PKR hit anall-time low of Rs. 307.10 against the USD. However, a series of measures,including crackdowns on smugglers and hoarders, along with structuralreforms introduced by the State Bank of Pakistan (SBP) in the ExchangeCompanies’ sector, have effectively turned the tide.
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Furthermore, the positive impact of these measures is not confined solelyto the interbank market. The open market rate of the USD has alsoexperienced a significant transformation, with its value dropping from analarming high of above Rs. 335 in early September to its current level ofapproximately Rs. 290. This represents a notable recovery of nearly Rs. 45in a relatively short span of time.
This impressive revival of the Pakistani Rupee against the US Dollarshowcases the country’s commitment to financial stability and underscoresthe importance of effective economic policies in managing currencyfluctuations. It will be interesting to monitor how these developmentsshape Pakistan’s economic landscape in the coming months.