USD reaches six-month low against Pakistani rupee

The Pakistani rupee (PKR) has been on an upward trend against the US dollar (USD), reaching its lowest level in six months.

This shift comes amid efforts to curb dollar smuggling.

In interbank trading this week, the US dollar depreciated by 5.50 rupees, closing at 282.69 rupees, a notable decline from the previous week’s closing rate of 287.74 rupees.

In the open market, the US dollar followed suit, dropping by 6.50 rupees, closing at 281.50 rupees compared to the previous rate of 288 rupees.

This consistent decline in the US currency against the Pakistani rupee has been observed over the past few weeks since the beginning of September.

Notably, other foreign currencies have also seen a decrease in value in the currency market alongside the US dollar. In just one week, the Euro dropped by 8 rupees, falling from 306 to 298 Pakistani rupees.

The British Pound Sterling lost five rupees, settling at 248 from 353 rupees within the same period.

The Saudi Riyal decreased by one rupee, going from 76.20 to 75.20 rupees, while the Emirates dirham also shed 2.60 rupees, closing at 77.20 from 79.80 rupees at the end of the week.

The rise of the Pakistani rupee against the US dollar in the open market is attributed to the narrowing gap between the open and interbank markets, staying within the limits set by the International Monetary Fund (IMF).

This appreciation of the rupee is occurring concurrently with a nationwide crackdown on illegal currency trading conducted by law enforcement agencies.