KARACHI
Pakistani rupee continued its winning streak against the US dollar in the interbank market for the 16th straight session and appreciated by Rs1.o6 on Tuesday.
The State Bank of Pakistan (SBP) said in a tweet that the rupee opened at 290.86 against the dollar in the interbank market and closed at 289.80, showing an appreciation of 0.37 percent.
The rupee gained Rs17.26 against the dollar in the last 16 trading sessions due to strict measures against Afghan transit and hawala. Today’s gains extend the upward trajectory that has continued since the army-backed crackdown on the illegal trade of the dollar began earlier this month. However, the rupee has depreciated by Rs3.81 during the current fiscal year 2023-24, and Rs62.38 in the current year.
Meanwhile, the local unit gained Re1 in the open market and was quoted in the range of 290-293 a dollar against 291-294 a session earlier. The rupee has appreciated by Rs41 in the last 16 sessions.
The local currency has significantly gained in the past three weeks, with analysts attributing the rise to an ongoing crackdown on illegal dollar outflows. Currency dealers said that exporters have been selling dollars on a large scale, fearing further devaluation. Moreover, reports of increased vigilance of the Afghan transit trade also contributed to the rupee’s rise, they added.
The experts say the rupee’s appreciation is on the back of administrative and enforcement measures, some believe the gain reflects the currency’s fundamental value if ‘speculation’ and negative sentiment were to be kept aside. “We expect PKR to further gain in coming days to at least reach Rs278-280 against USD, if these positive measures continue like this and some external flows materialize timely,” they added.
In a related development, foreign exchange reserves held by the SBP increased by $56 million on a weekly basis, clocking in at $7.7 billion as of September 15. Total liquid foreign reserves held by the country stood at $13.19 billion. Net foreign reserves held by commercial banks stood at $5.49 billion. However, the central bank reserves had been under pressure due to debt repayments, rise in import payments after ease in restrictions, and lack of fresh inflows.
