October 31, 2022 (MLN): Enduring a seesaw journey, the Pakistani rupee (PKR) managed to break its losing streak after three consecutive sessions on Monday as the local unit gained 2.47 rupees against the greenback.
The local unit was quoted at PKR 220.02/220.52 [12:47 PST] with the trades being reported at 220 per USD while in the open market, PKR is being traded at 224/226 per USD.
The primary reason behind this notable appreciation is the statement by Finance Minister Ishaq Dar which he made during the meeting with Exchange Companies (ECs) and CEOs of commercial banks on Sunday wherein he warned smugglers to stay away from hoarding dollars, Zafar Paracha, President of Exchange Companies of Pakistan (ECAP) said.
Ishaq Dar was of the view that PKR is soon going to be strong and those individuals and banks involved in speculation will have to face the burnt as the authorities would take stern action against them.
"At present, PKR is undervalued as its value against the US dollar is lower than the mark of 200," he added.
Meanwhile, the Real Effective Exchange Rate (REER) index of September has depreciated to 90.9 compared to 94.4 in August which indicates that the rupee is undervalued.
