US dollar continues to decline against rupee. On Monday, the interbank market saw the US dollar continue to decline as a result of the authorities’ crackdown on illegal currency exchange and foreign currency smugglers.
Today’s interbank market saw a Re0.9 increase for the local currency vs the US dollar.
According to the most recent data posted by the State Bank of Pakistan (SBP) on its official X handle, formerly known as Twitter, the PKR increased by 0.31% from Friday’s closure of Rs291.76 to close at Rs290.86.
The dollar’s value versus the rupee dropped by Rs16.40 during the last two weeks from its peak. The price of the US dollar fell to Rs293 on the open market, down 5 paisa.
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Capital market specialist Saad Ali told that the government’s campaign against illegal currency trading was a big factor in the rupee’s recent strengthening.
The analyst failed to identify a fundamental cause for the local unit’s flight from the dollar. “I have a feeling it won’t last very long.”
In response to a query, Ali stated that although he did not believe that the dollar would drop to Rs250, it might only reach the level at where the rupee was when the caretaker government assumed power.
“Dollar may drop to about Rs285”, he continued.
Last week, Sindh Governor Kamran Khan Tessori predicted that the dollar rate will continue to plummet, and that in the next days, it will reach Rs250–255 against the local currency.
US dollar continues to decline against rupee, check the Tweet:
Interbank closing #ExchangeRate for today https://t.co/Yokn6FlUq5#SBPExchangeRate pic.twitter.com/wMTTSaWu4K
— SBP (@StateBank_Pak) September 25, 2023
The local currency gained 1.74% more over the previous week and finished at 291.76 against the US dollar. Experts attribute the recent considerable rebound of the rupee’s value against the US currency to administrative and enforcement actions.
Taking to his X 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.
PKR gained (+5.3%, PKR 15.3) against $ 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 Rs. 278-280/$ if these positive measures continue like this and some… pic.twitter.com/WUUQx4ccww
— Shahid Ali Habib (@ShahidAliHabib1) September 23, 2023
However, the Forex Association of Pakistan (FAP) reports that the open market exchange rates for purchasing and selling the dollar were 291.1 and 294 respectively.
