KARACHI:
In line with market expectations, the Pakistani rupee continued its ascent, reaching a near three-month high, with a value standing comfortably below Rs284 against the US dollar in the interbank market on Thursday.
According to the most recent data released by the State Bank of Pakistan (SBP), the domestic currency notched up another impressive gain of 0.37%, equivalent to Rs1.06, culminating in a closing rate of Rs283.62 against the greenback.
In the surge over the course of the past 21 working days has translated into a cumulative appreciation of 8.28%, amounting to Rs23.48. This resurgence has brought about a substantial reduction in import costs, a development of paramount importance for a nation heavily reliant on foreign goods.
In the open market, the currency maintained its upward trajectory, registering a gain of 0.35% or Rs1, ultimately closing at Rs284/$, according to the Exchange Companies Association of Pakistan (ECAP).
The ongoing robust rally exhibits no signs of waning, with strong momentum expected to persist, supported by administrative measures aimed at curbing currency smuggling and speculation. The interim federal commerce minister recently underscored that these actions should not be construed as state or central bank interventions in the currency markets.
Read Bank deposits are perfectly safe: SBP
Currency markets continue to function independently, adhering to a market-based exchange mechanism governed by the dynamics of demand and supply. The influx of export earnings and remittances consistently outstrips the demand for import payments.
Published in The Express Tribune, October 6th, 2023.
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