On Tuesday, the rupee exhibited an upward trend, with its value against the US dollar falling below Rs290 in the interbank market during the morning session. This strengthening is primarily attributed to a rigorous clampdown on the money market. As per the Forex Association of Pakistan, the US dollar stood at Rs289.78 around 9:48 am, showing a decrease of Rs1.18 from the prior day’s closing at Rs290.86.
This upward movement of the rupee has been consistent since the commencement of the military-supported initiative to counter the unauthorized trading of the dollar earlier in the month. The rupee also displayed progress in the open market, trading at Rs292 compared to the preceding day’s Rs293, as the Exchange Companies Association of Pakistan reported.
Financial expert Saad Bin Naseer of Mettis Global pointed out that the rupee has appreciated for 16 straight days, marking an almost 6% increase. He credited the government’s decisive administrative measures for this trend. Naseer mentioned to Dawn.com that the measures address the speculative elements causing rupee depreciation. He indicated a positive outlook for the rupee if the current trend persists and the Afghan border stays closed. Nevertheless, Naseer stressed the significance of attracting Foreign Direct Investment (FDI) in export-driven sectors for lasting stability.
Conversely, Khurram Shehzad, CEO of Alpha Beta Core, expressed that the current rupee gains might be temporary. He emphasized the importance of dollar inflows from remittances, exports, and foreign investments for sustainable long-term growth.
