The rupee has strengthened further against the US dollar, rising by Rs1.12 in the interbank market during morning trade. This follows a steady appreciation of the rupee over the past few weeks, which can be attributed to the military-supported crackdown on illegal outflows of the dollar. In the open market, the US dollar also decreased by Rs1.5 against the rupee. However, there is uncertainty about whether this trend will be sustained in the long term.
According to the Forex Association of Pakistan, the dollar was trading at Rs287.63 at around 9:43 am, compared to the previous day’s closing rate of Rs288.75, as reported by the State Bank of Pakistan. Meanwhile, the Exchange Companies Association of Pakistan revealed that the USD was being traded for Rs288.5 in the open market, as opposed to Rs290 the day before. The recent gains in the rupee were seen as a temporary result of government measures, and there are doubts about the underlying factors that could potentially reverse this trend.
Financial analyst Khurram Husain emphasizes in an op-ed that the previous stability in the exchange market under the PDM government was short-lived because the fundamental issue of an excess supply of rupees and a limited supply of dollars remained unresolved. While the current crackdown on illegal dollar outflows has contributed to the rupee’s recent appreciation, the sustainability of this trend is uncertain. As the situation evolves, further updates on the currency exchange rate can be expected.