Back-to-back gains: Pakistan's rupee continues to strengthen against US dollar

Pakistan's rupee posted its second successive gain against the US dollar, appreciating to 170.53 in the inter-bank market on Friday.

As per the State Bank of Pakistan (SBP), the PKR closed at 170.53 against the USD, a day-on-day appreciation of 34 paisas or 0.20%. Since dropping to 170.96 against the greenback, the lowest level in its history, earlier this week, the PKR has gained 43 paisas.

The appreciation comes as the central bank continues to introduce measures to address the rupee decline.

Earlier this week, the SBP announced new rules to enhance transparency in the foreign currency transactions by exchange companies and to curb the undesirable outflow of cash foreign currency.

Pakistan's rupee strengthens against US dollar

This follows recent measures taken by the State Bank to curb imports such as the imposition of 100% Cash Margin Requirements (CMR) on import of 114 items, taking the total number of items to 525. Furthermore, it also revised Prudential Regulations (PRS) for consumer financing to moderate demand growth in the economy.

“The government is proactively addressing issues on the external front through the imposition of regulatory measures,” BMA Capital Executive Director Saad Hashmey told Business Recorder.

Hashmey said that the latest inflows of Roshan Digital Accounts (RDA) would also improve market sentiment.

Cumulative inflow under the RDA has reached $2.411 billion in the thirteen months since its inception. As per the central bank data, an inflow of $297 million was recorded in September, over 21% higher month-on-month.

Roshan Digital Accounts: Pace picks up as inflow crosses $2.4 billion in 13 months

Meanwhile, news from the international front pertaining to prices of international commodities especially coal and gas has also brought some relief.

Inter-bank market rates for dollar on Friday

BID Rs 170.40

OFFER Rs 170.50

Open-market movement

In the open market, the PKR gained 30 paisas for both buying and selling against USD, closing at 170.70 and 171, respectively.

Against Euro, the PKR gained one rupee for buying and 50 paisas for selling, closing at 196.50 and 198.50, respectively.

Against UAE Dirham, the PKR lost 10 paisas for both buying and selling, closing at 47.60 and 47.90, respectively.

Against Saudi Riyal, the PKR remained unchanged for buying while gaining 10 paisas for selling, closing at 45.20 and 45.40, respectively.

Open-market rates for dollar on Friday

BID Rs 170.70

OFFER Rs 171