Rupee extends gains to 21st consecutive session

KARACHI: The rupee extended gains against the dollar for the 21st straight session in the interbank market on Thursday.

The rupee appreciated by 1 rupee to settle at 283.62 to the dollar from 284.68 on Wednesday. In the open market, the local currency increased by 1 rupee. The Exchange Companies Association of Pakistan reported that the rupee was trading at 284 per dollar for selling as opposed to 285 in the previous session.

The crackdown on the grey forex market and illegal dollar hoarding has boosted the rupee. However, the rupee also benefited from a relief rally brought on by a decline in global oil prices. This will benefit Pakistan and other oil-importing nations. The pressure on the country’s current account deficit is projected to decrease as a result of the drop in oil prices.

Additionally, the SBP's reform of the exchange companies sector has had a significant impact. Overall, these actions have caused significant dollar selling in the open market. Analysts predict that the rupee will continue to rise.

The rupee's near-term outlook is expected to be positive, but its medium-term future course will be determined by the state of the country's economic fundamentals, especially the conclusion of the International Monetary Fund’s review of the stand-by arrangement (SBA) and the position of the foreign exchange reserves.