The rupee has continued to rise against the US dollar, trading for less than Rs290 in the interbank market. This upward trajectory is mainly attributed to a crackdown on the illegal trade of the dollar. The greenback was trading at Rs289.78, down from the previous day’s close of Rs290.86. This marks the 16th consecutive day of appreciation for the Pakistani rupee, which amounts to almost a 6% increase. However, analysts believe that the current gains may be short-term and emphasize the need for long-term sustainability through remittances, exports, and foreign investments.
The government’s clampdown on the illegal trade of the dollar has resulted in the rupee’s continued appreciation against the US dollar. The interbank market saw the rupee trading for less than Rs290, with the greenback at Rs289.78. This trend has been ongoing for the past 16 days and has led to a nearly 6% increase in the value of the rupee. Financial experts believe that the speculative elements that have contributed to rupee depreciation are being addressed through these crackdowns. They also suggest that the rupee could appreciate further in the future if the border with Afghanistan remains sealed. However, long-term stability will require a focus on attracting foreign direct investment into export-oriented sectors.
While the current gains are seen as positive in the short term, some analysts caution that sustainability will depend on dollar inflows from remittances, exports, and foreign investments. Khurram Schehzad, the CEO of Alpha Beta Core, emphasized the need for long-term sustainability to ensure the stability of the rupee. Despite the recent appreciation, the government must work on fostering a favorable investment climate to attract foreign direct investment and promote export-oriented sectors. This will help secure a steady flow of dollars and maintain the value of the rupee in the long run.