In line with market expectations, Pakistani currency continued to display strength for the 24th consecutive working day on Tuesday, hitting a new three-month high below Rs281 against the US dollar in inter-bank market.
According to State Bank of Pakistan’s (SBP) data, the rupee recorded fresh gains of 0.41%, or Rs1.14, and closed at Rs280.51 against the greenback.
With the latest appreciation, the rupee has cumulatively surged 9.48%, or Rs26.59, in the past 24 working days. The recovery came after caretaker Prime Minister Anwaarul Haq Kakar reiterated that the ongoing crackdown on currency and commodity smugglers would continue.
The clean-up operation has yielded positive results as currency leakages have come to a halt, which helps prop up foreign currency inflows in the country.
In open market, the rupee regained 0.18%, or Rs0.50, to Rs280/$, according to the Exchange Companies Association of Pakistan. The currency has cumulatively recovered 17.14%, or Rs48, in the past 25 days in retail market in a historic rally.
The astonishing recovery caused a significant reduction in gold price that slipped below Rs200,000 per tola (11.66 grams) after several months.
The All Pakistan Saraf Gems and Jewellers Association (APSGJ) reported that the precious metal dropped by 7.20%, or Rs15,500, at Rs199,500 per tola.
The association announced the rate after a hiatus of almost one month amid the crackdown on gold smugglers. The downward price revision was made for the past one month.
The drop in the commodity’s price was partially backed by the downward trend in global markets. Gold dipped $55 in the past one month and stood at $1,856 per ounce (31.10 grams) on Tuesday, the association said.
Published in The Express Tribune, October 11th, 2023.
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