The Pakistani rupee posted a modest recovery against the US dollar this week as a result of an ongoing crackdown on illegal currency trading and reduced dollar demand, market analysts said on Thursday.
The greenback, which had shown a steady upward trajectory in recent weeks, lost ground both in the interbank and open markets. In the interbank market, the dollar dropped from Rs284.97 to Rs284.25 over the span of two days—a decline of 72 paisa.
Meanwhile, the open market witnessed a sharper fall, with the dollar slipping by Rs1.30 to trade at Rs287.30, down from Rs288.60.
Currency dealers attributed the reversal in dollar rates to increased enforcement actions against the Hawala and Hundi networks—a parallel remittance system that bypasses official banking channels.
Speaking to SAMAA TV, Chairman of the Exchange Companies Association of Pakistan (ECAP), Malik Bostan said the rupee’s recovery is expected to continue. “The ongoing crackdown against illegal money changers is yielding results,” he said.
“The State Bank has also halted dollar purchases from the interbank market, creating less pressure on the rupee. There is no shortage of dollars. People should sell rather than hoard them.”
Bostan, who recently met with a senior official in Islamabad on July 22 to discuss the currency situation, urged the public to trust the market stability and avoid speculative buying. He hinted that the rupee could see further appreciation if current trends persist.
Meanwhile, traders said remittance inflows have remained steady post-Eid, contributing to improved dollar liquidity. “Since the crackdown, we’ve seen more customers willing to sell their dollars, which is creating a balance in the market,” said a currency dealer based in Karachi.
On the equities front, the Pakistan Stock Exchange also showed signs of resilience. The benchmark KSE-100 Index was trading above 139,800 points on the fourth day of the trading week, reflecting investor confidence in economic reforms and administrative actions.
