Pakistani Rupee Strengthens Against US Dollar in Interbank Market

Rupee Posts Marginal Gains Against Dollar in Interbank Trading

On Thursday, insiders reported marginal gains in the value of the Pakistani rupee against the US dollar in the interbank market. In the early morning trade, the local currency was observed at Rs282.50, marking a 40-paisa increase.

The greenback concluded at Rs282.90 after depreciating by 11 paisas in the interbank market. Notably, since December 12, the rupee has shown signs of appreciation. According to statements from the caretaker government, this surge in strength is attributed to a crackdown on illegal money exchangers and hoarders.

In November, the International Monetary Fund (IMF) staff and Pakistan reached a staff-level agreement on the first review under Pakistan’s Stand-By Arrangement (SBA). Approval from the executive board would unlock $700 million from the $3 billion SBA.

As part of the agreement, Pakistan committed to refraining from “administrative actions” to control the value of the dollar against the rupee. The IMF emphasized that maintaining a market-determined rupee is crucial to sustainably alleviate external pressures and rebuild reserves. To support this, Pakistan plans to enhance transparency and efficiency in the foreign exchange market.