KARACHI: The rupee appreciated against the dollar in the interbank market on Tuesday, with the greenback falling by 2 rupees and 16 paise to reach 299 rupees. This is the first time the dollar has fallen below the 300-rupee mark since July 2022.
The appreciation of the rupee is being attributed to the stringent measures taken by the government in recent weeks to curb dollar hoarding and smuggling. On September 10, Interior Minister Sarfaraz Bugti announced that the government would impose severe penalties on those involved in these activities. He also said that a nationwide campaign had been launched against dollar hoarders and smugglers, and that so far, 40 to 50 people had been arrested.
Komal Mansoor, the Head of Tesmark, said that the market has dipped below Rs 300 due to the measures implemented by the government. However, she added that significant gains are not expected, and that the rupee may stabilize around the Rs 295 level. She also said that the upcoming meeting of the Monetary Policy Committee on September 14 and the government’s monitoring level will play a crucial role in determining the future of the currency.
The appreciation of the rupee is a positive development for the Pakistani economy. It will make imports cheaper and help to ease inflation. However, it is important to note that the rupee is still under pressure, and the government will need to continue to take measures to curb dollar hoarding and smuggling in order to sustain the appreciation.