In the interbank market, the Pakistani rupee continued to rise against the US dollar, trading at less than Rs290. This upward trend is attributed to the government’s clampdown on the illegal trade of the dollar. The greenback was trading at Rs289.78, down from the previous day’s closing of Rs290.86. This marks the 16th consecutive day of appreciation for the rupee, amounting to an almost 6% increase. Saad Bin Naseer, director of financial services platform Mettis Global, believes that the speculative elements contributing to rupee depreciation are being addressed through the government’s measures.
Despite the short-term gains, some analysts caution that sustainability requires dollar inflows from remittances, exports, and foreign investments. For long-term stability, the focus should be on attracting foreign direct investment (FDI) into export-oriented sectors. The appreciation of the rupee is expected to continue if the current trend persists and the Afghan border remains sealed. It is crucial to address the underlying economic fundamentals to ensure a stable and sustainable exchange rate in the long run.