The Pakistani rupee has posted a modest recovery against the US dollar this week. Market experts say this improvement is due to a strong crackdown on illegal currency trading and a drop in dollar demand.
In the interbank market, the dollar declined from Rs284.97 to Rs284.25 over two days, a fall of 72 paisa. The open market saw a sharper drop, with the dollar slipping by Rs1.30 to trade at Rs287.30, down from Rs288.60.
Currency dealers explain that the enforcement against Hawala and Hundi networks, which operate outside official banking channels, has helped reduce pressure on the rupee. These networks are known for illegal money transfers and currency trading.
Malik Bostan, Chairman of the Exchange Companies Association of Pakistan (ECAP), told that the rupee’s recovery is expected to continue. He highlighted the impact of ongoing actions against illegal money changers and said the crackdown is showing positive results.
The State Bank of Pakistan has also stopped buying dollars from the interbank market. This move has eased pressure on the Pakistani rupee and improved market stability. Bostan encouraged people to sell dollars instead of holding on to them, which would further help the rupee’s strength.
Remittance inflows have remained steady since Eid, adding to the dollar supply. A currency dealer in Karachi said that more customers are now willing to sell dollars, which helps balance the market.
The Pakistani rupee’s gradual rise reflects growing confidence in economic reforms and government actions. On the stock market front, the Pakistan Stock Exchange showed resilience, with the KSE-100 Index trading above 139,800 points.
Overall, the Pakistani rupee’s recent recovery is linked to better law enforcement, steady remittances, and improved market sentiment. Experts remain cautiously optimistic about the currency’s future if current trends continue.
Also Read: Inter-Bank Sees Slight Rupee Gain Versus Dollar
