Pakistani Rupee makes record breaking run against US Dollar
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The Pakistani Rupee (PKR) has continued its remarkable resurgence against the US Dollar (USD), displaying a sustained upward trend in the interbank market. This noteworthy performance unfolded on Wednesday when the local currency recorded a substantial gain of Rs. 1.05 against the greenback during 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 worth noting that this follows another impressive gain of Rs. 1.06 against the USD recorded at the close of the previous trading session, where the PKR had settled at Rs. 289.80.
The resilience of the Pakistani Rupee is particularly evident when considering its performance throughout the current month, where it has appreciated by a remarkable 6 percent against the USD. This resurgence comes as a surprise given the significant depreciation of the PKR by 21.58 percent since the beginning of the year, and a more modest 0.96 percent depreciation since the commencement of the current financial year.
A particularly bleak point was reached on September 5th when the PKR hit an all-time low of Rs. 307.10 against the USD. However, a series of measures, including crackdowns on smugglers and hoarders, along with structural reforms introduced by the State Bank of Pakistan (SBP) in the Exchange Companies’ sector, have effectively turned the tide.
Furthermore, the positive impact of these measures is not confined solely to the interbank market. The open market rate of the USD has also experienced a significant transformation, with its value dropping from an alarming high of above Rs. 335 in early September to its current level of approximately Rs. 290. This represents a notable recovery of nearly Rs. 45 in a relatively short span of time.
This impressive revival of the Pakistani Rupee against the US Dollar showcases the country's commitment to financial stability and underscores the importance of effective economic policies in managing currency fluctuations. It will be interesting to monitor how these developments shape Pakistan's economic landscape in the coming months.
