The Pakistani currency has witnessed a remarkable recovery, reaching a near-one-month high of Rs297.96 against the US dollar in the interbank market on Thursday. This surge marks the seventh consecutive working day of gains, largely attributed to the government’s crackdown on currency smugglers.
Data from the State Bank of Pakistan (SBP) reveals that the rupee gained 0.29%, equivalent to Rs0.86, closing at Rs297.96 against the US dollar. Over the past seven days, the currency has gained nearly 3%, or Rs.9.14.
Rumors of a potential interest rate hike by the central bank also played a role in supporting the currency’s rally. However, the SBP surprised the market by maintaining the current key policy rate at 22%.
The open market saw the local currency rebounding by 1%, reaching Rs298 against the US dollar during the day. This trend negatively impacts gold pricing, as the pricing body considers the rupee-dollar exchange rate when determining global commodity prices for the local market.
Overall, the Pakistani rupee has recovered Rs.30 over eight successive days in the open market after experiencing a sharp depreciation earlier in the caretaker government’s tenure.
