Pakistani rupee managed to post gains for the eleventh straight session on Thursday.
The rupee continued its appreciation against the US Dollar in the interbank market as it regained Rs. 1.11 against the greenback during the current week.
According to Capital stake, the Pakistani Rupee is on its way to recovery as it gained 0.69% against the US Dollar during the week. The local currency recorded a rise of 5.44/US$ during the month of October 2020.
The rupee (PKR) appreciated by 36 paisas against US Dollar (USD) in today’s interbank session as it closed at Rs. 160.26 per USD, against the last session’s closing of Rs. 160.62 per USD.
The inflows of workers’ remittances and export receipts offset the demand for import payment and boosted the local currency.
The consistent inflows of foreign exchange in the country due to overseas’ remittances, investments through Roshan digital accounts in October, and export receipt maintained a favorable balance of supply and demand of the greenback in the local market, causing Rupee-USD parity to gain stability.
Expectations of an increase in exports along with lower demand for the dollar on the importers’ side helped the local currency gain against the greenback.
The continuous weakening of the US Dollar in international markets is also pulling the Rupee back to fair values. The Pakistani Rupee is strong, competitive & market-driven. More exports will drive the currency stability.
The measures taken by the State Bank of Pakistan (SBP) to encourage overseas Pakistanis to send money home through legal channels have started to show results as more dollars have been flowing through banking channels and hard cash movement of foreign currency through illegal channels of hawala and hundi has been cut down.