KARACHI: The rupee continued its rally against the US dollar on Monday, rising for the 14th consecutive session in the inter-bank market and closing at its highest level in nearly three weeks.
The rupee gained 0.31 percent or 0.9 rupees to settle at 290.86 against the greenback, according to the State Bank of Pakistan (SBP). The currency also appreciated in the open market, where it traded at 290 rupees for buying and 293 rupees for selling, up 50 paisa from Friday’s close, data from the Exchange Companies Association of Pakistan (ECAP) showed.
The rupee has recovered 5.28 percent or 16.24 rupees since hitting a record low of 307.1 on September 5, amid strict measures by the authorities to curb illegal outflows and speculation. The SBP has also directed commercial banks to establish their own exchange companies as fully-owned subsidiaries to improve the efficiency and transparency of the foreign exchange market.
Analysts expect the rupee to gain further in the coming days, as the country awaits inflows from multilateral lenders . The IMF is expected to release its second tranche a $3 billion bailout package for Pakistan after a review in November.
“PKR gained over 5.3 percent, or Rs15.3 against USD in the last thirteen consecutive trading sessions due to strict measures against Afghan transit and hawala,” said Shahid Ali Habib, CEO of brokerage house Arif Habib Limited, in a post on social media platform X. “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 materialise timely.”