KARACHI
\nPakistani rupee extended gains against the US dollar in the interbank market and appreciated by Rs1.27 (+0.42 percent) on Tuesday.
\nThe State Bank of Pakistan (SBP) said in a tweet that the rupee opened at 301.16 against the dollar in the interbank market and closed at 299.89, showing an appreciation of 0.42 percent. The rupee appreciated against the US dollar in the interbank market by Rs2.52 last week and has appreciated by Rs3.06 during the last two sessions, while it has depreciated by Rs13.90 during the current fiscal year 2023-24, and Rs72.46 in the current year.
\nMeanwhile in the open market, the rupee was quoted in the range of 297-300 against the dollar in the open market as compared to 295-299 a session earlier. The rupee appreciated by Rs35 in the last six sessions prior to this depreciation.
\nThe market experts termed the depreciation in the dollar\u2019s value as a consequence of the crackdown. They said the measures have stopped the capital flight and there\u2019s now an excess supply of dollars in the market.
\nMoreover, reports of increased vigilance of the Afghan transit trade also contributed to the rupee\u2019s rise, they added. They suggested the government continue with these measures in a sustainable manner to bring further improvement in the rupee\u2019s value.
\nLast week, caretaker Prime Minister Anwaarul Haq Kakar said a crackdown to prevent cross-border smuggling was initiated across the country. Likewise, interim Interior Minister Sarfraz Bugti reiterated the caretaker government\u2019s resolve on Sunday to take elements involved in smuggling and hoarding to task, including those accumulating dollars.
\nThe interim government\u2019s initiative is in line with Chief of Army Staff Gen Asim Munir\u2019s recent assurance to the business community of fostering transparency in dollar exchange and interbank rates.
\nOn the other hand, the SBP has also stepped up supervision of the foreign exchange market, ordering banks to set up separate entities to conduct forex transactions and extending a clampdown on hard-currency hoarders and smugglers.
\nThe central bank has also decided to introduce structural reforms in the exchange companies\u2019 sector to provide \u201cbetter services to the general public and bring transparency and competitiveness\u201d.
\nIn a related development, inflows of home remittances posted a decline of 22 percent during the first two months of this fiscal year (FY24), the SBP reported on Monday. According to the SBP, Pakistan received workers\u2019 remittances amounting to $4.12 billion in July-August of FY24 compared to $5.25 billion in the same period of last fiscal year (FY23), a massive decline of 21.6 percent or $ 1.13 billion.<\/p>\n","protected":false},"excerpt":{"rendered":"
KARACHI Pakistani rupee extended gains against the US dollar in the interbank market and appreciated by Rs1.27 (+0.42 percent) on Tuesday. The State Bank of Pakistan (SBP) said in a tweet that the rupee opened at 301.16 against the dollar in the interbank market and closed at 299.89, showing an appreciation of 0.42 percent. The […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-355535","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-business"},"yoast_head":"\n