Recently, the PKR was worth 301.16 USD at the end of the day, but it has since gotten stronger and is now worth 296.85 USD. The currency earned 1.43%, or Rs4.31, in just five sessions. This change is because the black market for money has less desire for dollars.
This good trend is due to a number of things. First, a crackdown on speculation on the foreign exchange market has started to show effects. This has made the difference between the official exchange rate and the private exchange rate smaller.
Second, export earnings and money sent home by Pakistanis have gone up, bringing in more foreign cash. The current account imbalance, which is the difference between how much foreign currency comes in and how much goes out, shrunk by a lot.
Even though the dollar is getting stronger, it still has a long way to go. Since trade restrictions were lifted, more foreign currency is being asked for. This could put some pressure on the rupee.
Also, the exchange rate might not go below 285 PKR/USD and might stay between 290 and 295 because things like slower changes in product prices and porous borders with Afghanistan could keep it there.
In the end, the recent success of the rupee is good news for Pakistan economy. It shows that the economy is more stable and that there is more control over the foreign exchange market. But it’s important to be careful and keep an eye on the situation because the economy can change.