The Pakistani rupee (PKR) has continued its remarkable upward trajectory, reaching its highest point since April, bolstering confidence in the currency.
Over the past month, the rupee has surged by more than 8%, making it the top-performing currency in the world.
USD to PKR in October 2023 – One US Dollar is now trading at Rs 282.60 on October 9, 2023.
USD to PKR in April 2023 – The exchange rate of the one US Dollar against Pakistani Rupees in the local and open market was recorded at around Rs 289 to 290 April, 2023.
US Dollar slumps against PKR
The US dollar (USD) has faced consistent declines against the Pakistani rupee in recent weeks, with the interbank exchange rate now standing at Rs282.60. This downward trend follows a concerted crackdown against dollar smuggling, resulting in a significant drop of 5.50 rupees in interbank trading this week.
In the open market, the US dollar saw a substantial decrease of 6.50 rupees, closing at 281.50 compared to its previous rate of 288 rupees. This consistent decline against the Pakistani rupee in the open market has been a recurring trend since the beginning of September.
One noteworthy aspect of the Pakistani rupee’s surge is that it’s occurring within the narrow limits prescribed by the International Monetary Fund (IMF), bridging the gap with the interbank market.
Other Currencies follow suit
It is not just the US dollar feeling the impact, other foreign currencies have also seen their values drop in the currency market. In the past week, the Euro lost 8 rupees, falling from 306 to 298 Pakistani rupees. The British Pound Sterling similarly saw a decrease of five rupees, reaching 248 from 353 rupees in just a week.
The Saudi Riyal lost one rupee, moving from 76.20 to 75.20 rupees, while the Emirates dirham shed 2.60 rupees, settling at 77.20 from 79.80 rupees over the weekend.
| Currency | Buying | Selling |
|---|---|---|
| US Dollar | 279.2 | 282 |
| Euro | 297 | 300 |
| UK Pound Sterling | 346 | 350 |
| UAE Dirham | 78.2 | 79 |
| Saudi Riyal | 75.25 | 76 |
| Australian Dollar | 180 | 182 |
| Bahrain Dinar | 765 | 773 |
| Canadian Dollar | 211 | 213 |
| China Yuan | 39.62 | 40.02 |
| Kuwaiti Dinar | 930 | 939 |
| Malaysian Ringgit | 61.62 | 62.22 |
| Omani Riyal | 748.72 | 756.72 |
| Qatari Riyal | 79.69 | 80.39 |
| Swiss Franc | 314.12 | 316.62 |
PKR’s remarkable September 2023 performance
September has been a particularly strong month for the Pakistani rupee, solidifying its position as the best-performing currency in recent weeks. However, history serves as a cautionary tale, as the last time the rupee held this title in September 2022, it subsequently lost 22% of its value within just four months.
A beacon of stability
The PKR has emerged as the world’s top-performing currency against the US Dollar over the past month, with a remarkable appreciation of 9.67%. This trend sets Pakistan apart from other major economies where their respective currencies have depreciated against the US Dollar. Countries like Mexico, Brazil, and Russia have seen significant depreciations of 3.78%, 3.24%, and 3.03%, respectively, making Pakistan’s currency a symbol of stability.
Dollar value comes down after hitting record high in September
In a surge that took many by surprise, the US dollar reached an unprecedented high of Rs330 in the open market on September 4, 2023. However, it has since seen a significant reversal in its upward trajectory, leading to renewed stability in the currency exchange landscape.
Crackdown on black market operators
This surge in the US dollar’s value was partly attributed to a crackdown on black market operators involved in the informal exchange market. This crackdown led to the repatriation of tens of millions of dollars into Pakistan’s interbank and open markets.
The government’s decisive action against illegal foreign exchange dealers and commodity market hoarders has contributed to stabilizing the exchange rate, alleviating imported inflation, and mitigating rising commodity prices, as stated in the finance ministry’s monthly report. Before the crackdown, the dollar was trading at Rs332 in the open market during August and September 2023.