Rupee rally continues with fresh gains of 0.33%

Currency stood below Rs279 against the US dollar in inter-bank market for the first time in three months

KARACHI:

Pakistani rupee maintained its winning streak for the 26th consecutive working day on Thursday, which came in the backdrop of government’s assertive statements and measures to stabilise the faltering economy.

The currency recovered and stood below Rs279 against the US dollar in inter-bank market for the first time in three months.

According to State Bank of Pakistan’s (SBP) data, the rupee gained 0.33%, or Rs0.93, and closed at Rs278.58 against the greenback.

In a remarkable recovery, the currency has cumulatively regained 10.24%, or Rs28.52, in the past 26 working days, compared to the all-time low of Rs307.10/$ hit on September 5, 2023. Market talk suggests that currency dealers are taking cue from the Special Investment Facilitation Council (SIFC) meetings and actions as the authorities have succeeded in eliminating the illegal currency and commodity trade, and are focusing on increasing exports and substituting imports to fix the struggling economy.

Notable improvements in export earnings and workers’ remittances are key examples of government’s actions being transformed into visible results.

In open market, the rupee increased 0.36%, or Rs1, and closed at Rs278 against the greenback, according to the Exchange Companies Association of Pakistan.

Over the past one month, the local currency has cumulatively gained almost 18%, or Rs50, in retail market.

Keeping that in view, the local gold pricing body revised down the commodity’s price by 3.80%, or Rs7,800, to Rs197,200 per tola (11.66 grams) on Thursday.

The precious metal’s price was slashed despite a notable rise in the global market, which saw an increase of $13 to $1,885 per ounce (31.10 grams) on a day-to-day basis.

Published in The Express Tribune, October 13^th, 2023.

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