Tuesday June 25, 2024

Dollar falls by Rs1.05 as rupee strengthens for 17th consecutive session

Greenback closes at Rs288, Rs290 in interbank and open markets, respectively

By Web Desk
September 27, 2023
A currency dealer can be seen counting $100 notes while Rs5,000 notes are placed on the table. — AFP/File
A currency dealer can be seen counting $100 notes while Rs5,000 notes are placed on the table. — AFP/File

The Pakistani rupee as part of its recent upward trend, strengthened by Rs1.05 in the interbank market on Wednesday.

The rupee appreciated by 0.36% against the US Dollar from yesterday’s close of Rs289.8 as the greenback today was closed at Rs288.75 in the interbank market, according to the State Bank of Pakistan (SBP).

In the open market, the US dollar closed at Rs290 after it fell by one rupee against the local currency. It is pertinent to know that following the government's nationwide crackdown against the hoarding and smuggling of foreign currencies, the greenback has shed its value by more than Rs18.

This is the 17th consecutive session that the rupee appreciated against the US dollar.

Last week, the local unit appreciated another 1.74% and settled at 291.76 against the greenback.

However, capital market expert Saad Ali — talking to earlier this week — said that the recent appreciation of the rupee [against US Dollar] was majorly driven by the government’s crackdown against the illegal currency trade and it is unlikely to "sustain for very long".

Ali also said that he believed that the US dollar "might come down to around Rs285" but is unlikely to fall to Rs250.

The Rs250 figure gained importance after Sindh Governor Kamran Khan Tessori last week, claimed that the market will see a further decline in the dollar rate, adding that the greenback will fall to Rs250-255 against the local unit in the coming days.

Taking to his X —formerly known as Twitter — handle, brokerage house Arif Habib Limited’s (AHL) CEO Shahid Ali Habib said: “PKR gained over 5.3%, or Rs15.3 against USD in the last thirteen consecutive trading sessions due to strict measures against Afghan transit and hawala.”

“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,” Habib added.

Experts see administrative and enforcement measures behind the recent significant recovery of the rupee's value against the US dollar.