Rupee reaches six-week high, stands below 291/$

Gains momentum in wake of improved foreign currency supplies

KARACHI:

Pakistani currency on Monday hit a six-week high below Rs291 to a dollar in the inter-bank market, extending its winning streak for the 15th working day in a row.

According to the State Bank of Pakistan’s (SBP) data, the currency rose 0.31%, or Rs0.90, at Rs290.86 against the greenback.

Market talk indicates that the currency has maintained its uptrend owing to support from the improving foreign currency supplies in the country.

Arif Habib Limited CEO Shahid Ali Habib projected on X (formerly Twitter) that the rupee would recover to Rs278-280/$ under the ongoing smart rally.

Earlier, interim Federal Commerce Minister Gohar Ejaz said that at present the actual value of the rupee was around Rs260/$.

Read Minister sees real value of dollar at Rs260

The currency has cumulatively regained 5.58%, or Rs16.24, in the past 15 working days, just Rs2.37 away from the level of Rs288.49/$ when the interim government assumed charge in mid-August.

In the open market, the currency recovered Rs0.50 and closed at Rs293/$ on Monday, according to the Exchange Companies Association of Pakistan.

Administrative measures like suspension of licences of the currency exchange companies involved in illicit activities and the crackdown on currency smugglers and hoarders have continued to yield results, supporting the rupee in extending its recovery drive.

The rupee also got support from the improvement in Pakistan’s foreign exchange reserves on a week-on-week basis amid increase in the inflow of workers’ remittances and rise in export earnings.

Market talk suggests the improvement in foreign currency reserves and the rupee-dollar exchange rate will lead to a reduction in petroleum prices and help control the high inflation.

Published in The Express Tribune, September 26^th, 2023.

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