The rupee has continued to rise against the US dollar, trading at less than Rs290 in the interbank market. This increase is mainly attributed to a clampdown on illegal dollar trading. The dollar was trading at Rs289.78 at around 9:48am, down from the previous day’s close of Rs290.86. This upward trajectory has been ongoing since the army-backed crackdown on illegal dollar trading started earlier this month. The rupee also gained ground in the open market, with the dollar trading at Rs292 compared to the previous day’s rate of Rs293. According to financial services platform Mettis Global, this marks the 16th consecutive day of PKR appreciation, amounting to a 6% increase.
Director of financial services platform Mettis Global, Saad Bin Naseer, stated that the surge in the rupee’s value is primarily due to administrative measures and crackdowns on speculative elements contributing to rupee depreciation. He also mentioned that if this trend continues and the Afghan border remains closed, the rupee is likely to appreciate further. However, for long-term stability, there is a need to attract foreign direct investment (FDI) into export-oriented sectors. Despite these positive developments, some analysts believe that the current gains are only short-term and that sustained long-term sustainability requires dollar inflows from remittances, exports, and foreign investments.
In summary, the rupee’s value against the US dollar continued to rise, reaching less than Rs290 in the interbank market. This increase is attributed to the crackdown on illegal dollar trading. Furthermore, the rupee also gained ground in the open market. While some analysts view this as a positive trend, others caution that sustained long-term stability requires additional sources of dollar inflows. Nonetheless, the current surge in the rupee’s value is seen as a result of administrative measures addressing speculative elements contributing to depreciation.