Pakistani Rupee Extends Winning Streak Against US Dollar Despite Flood Challenges
The Pakistani rupee continued its upward trend on Monday, marking the 27th consecutive session of gains in the inter-bank market. The local currency closed at Rs. 281.52 against the US dollar, showing a slight appreciation of 0.01% compared to the previous close of Rs. 281.55.
In the open market, the greenback was quoted at Rs. 282.35 for buying and Rs. 282.55 for selling, according to the Forex Association of Pakistan (FAP).
Meanwhile, the State Bank of Pakistan (SBP) reported mixed trends in other major currencies. The euro slipped by 5 paisa to close at Rs. 330.35, the Japanese yen remained stable at Rs. 1.90, while the British pound gained 82 paisa, ending the day at Rs. 382.39 compared to Rs. 381.56 previously.
Economic Outlook and Market Concerns
Analysts noted that the rupee’s strength has been underpinned by closer financial oversight, improved global ratings, and recent trade agreements. Since its low in July, the currency has gained nearly 1.2% in value.
However, challenges remain. The recent floods in Pakistan have impacted banking operations in several regions, temporarily affecting the availability of foreign currency. Experts caution that supply disruptions and increased dollar demand may create short-term pressures in the market.
Broader Economic Impact
The floods, which have displaced millions and disrupted supply chains, pose risks to foreign reserves and economic stability. Pakistan is also working to meet International Monetary Fund (IMF) requirements to ensure smooth financial inflows.
Despite these hurdles, the rupee’s consistent performance reflects resilience and confidence in Pakistan’s economy, with traders closely watching market developments in the weeks ahead.
