Rupee strengthens against dollar in interbank and open markets

(Web Desk): The Pakistani rupee gained value against the US dollar in both the interbank and open markets, driven by several positive developments.

Expectations of increased remittances due to the migration of 2.9 million professionals and skilled workers from Pakistan, projected earnings of $8 billion by 2030 from investments and mining in the Reko Diq and Thar Coal projects, and hopes of far-reaching positive economic impacts from a historic defense agreement with Saudi Arabia all contributed to strengthening the rupee in both foreign exchange markets.

Additionally, the receipt of new export orders worth $44 million by a Pakistani company and expectations of the next IMF loan tranche being approved — due to fulfillment of most conditions — kept the dollar under pressure in the interbank market throughout the trading session.

At one point, the dollar depreciated by 25 paisas, falling to Rs281.25, but as supply improved and market demand resumed, it closed at Rs281.46, down by 4 paisas.

In the open currency market, the dollar also declined by 5 paisas, closing at Rs282.50.

The rupee’s strength was further supported by a stable interest rate at 11%, rising foreign exchange reserves, and ongoing crackdowns against illegal forex activities, all of which had a significant impact on both exchange markets.