Pakistani rupee settles at Rs290.86 against US dollar, marking 14th consecutive gain

In continuation of its recent positive streak, the Pakistani rupee extended its upward trajectory against the US dollar for the 14th consecutive session, marking a gain of 0.31 per cent in the interbank market on Monday.

Interbank closing #ExchangeRate for today https://t.co/Yokn6FlUq5#SBPExchangeRate pic.twitter.com/wMTTSaWu4K

— SBP (@StateBank_Pak) September 25, 2023

According to data released by the State Bank of Pakistan (SBP), the rupee closed at Rs290.86, representing a noteworthy increase of Re0.9 in the inter-bank market. This sustained appreciation trend has seen the rupee make significant gains, amounting to 5.28 per cenr, or Rs16.24, since its record low of Rs307.1 against the US dollar on September 5 in the inter-bank market.

In the previous week, the rupee experienced a further appreciation of 1.74 per cent, concluding positively for all five trading sessions and settling at Rs291.76 against the US dollar in the inter-bank market by the end of the week. Additionally, the rupee’s performance in the open market has strengthened, reducing the ‘premium’ to negligible levels and aligning with the benchmarks established by the International Monetary Fund (IMF).

While several experts attribute the rupee’s recent gains to administrative and enforcement measures, some argue that these increases reflect the currency’s intrinsic value when speculative influences and negative sentiment are excluded.