Islamabad(The COW News Digital)The Pakistani rupee continued to strengthen against the US dollar in the interbank market on Monday, marking the 96th consecutive day of gains. Meanwhile, the dollar remained largely stable in the open market.
Analysts attribute the rupee’s resilience to a combination of positive economic developments. Three out of five financial conditions set by the International Monetary Fund (IMF) have been successfully met, clearing the way for the release of the next $1 billion tranche of financial assistance. This has instilled confidence in the interbank trading environment.
Additional support comes from the World Bank, whose leadership has expressed backing for a $20 billion, 10-year development package for Pakistan, and from ongoing cooperation agreements with Saudi Arabia across multiple sectors. These factors collectively contributed to the rupee’s continued strength.
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During Monday’s trading session, the dollar experienced a modest decline of 25 paisa in the interbank market, bringing the exchange rate to Rs. 279.46 per US dollar at one point. Experts highlighted that meaningful progress toward economic stability, improved fiscal management, and gradual recovery in key economic sectors are among the factors underpinning the rupee’s performance.
In contrast, the open market saw limited movement, with the dollar maintaining its previous levels. Traders noted that while interbank activity reflects institutional confidence and inflows from official channels, open market stability often reflects retail demand and broader market sentiment.
Economists believe that the rupee’s sustained performance in the interbank market signals investor confidence and could positively influence foreign investment, remittances, and overall economic outlook. However, they caution that continued fiscal discipline and structural reforms are necessary to maintain momentum and ensure stability across all currency markets.
Market participants also expect that upcoming IMF reviews, continued support from international financial institutions, and bilateral agreements with key partners like Saudi Arabia will remain crucial drivers of currency stability in the near term.
Overall, Monday’s session reflected the resilience of the Pakistani rupee in the formal interbank system, demonstrating the impact of policy measures and international support, even as open market dynamics remain relatively unchanged.
