Rupee continues to climb against US dollar unhindered

KARACHI: The Pakistani rupee extended its appreciation run against the US dollar, gaining another 0.36 percent during the opening hours of trading, and further climbing 93 paisa in the inter-bank market on Thursday.

At the end of trading day, USD clocked at Rs 278.58. Yesterday, the rupee had appreciated 0.36 percent to settle at Rs 279.51.

This is one of the longest appreciation runs seen by the rupee against the US dollar in the inter-bank market, and comes in large part due to the authorities’ crackdown on smuggling and hoarding of foreign currency as well as reforms in the Exchange Companies’ sector.

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This is the first time in three months that the greenback has dropped below the Rs 280 mark in the interbank market. Similarly, in the open market, the American currency fell below the Rs 280 mark to settle at Rs 279 after a drop of Rs 1.

In the last one month, the dollar has lost 9.3 percent in its value in the open market, while in the interbank trade it has dropped by 17.5 percent. Moreover, since touching the lowest parity, the rupee has recovered by Rs 28.53 against the USD in the interbank market.

The State Bank of Pakistan (SBP) on Wednesday also suspended the authorisation of five Exchange Companies of ‘B’ Category for noncompliance of rules and regulations.

The SBP has become more vigilant on exchange companies and strict actions are being taken. During the last one month, authorisation of 9 exchange companies have been suspended on serious violations.

The Federal Investigation Agency (FIA) has also deposited $900 million with the SBP, further lending strength to the rupee.