The PKR continued to recover for the sixth consecutive session on Friday, gaining Rs1.18 against the dollar in the interbank market.
The local currency closed at Rs228.45 per dollar, up 0.52 per cent from yesterday’s close of Rs229.63, according to the State Bank of Pakistan.
Alpha Beta Core CEO Khurram Schehzad said the PKR’s value started improving after strict action was taken against hundi/hawala networks and banks involved in speculation.
“The dollar’s value, which had been increased through speculation and artificial means, is declining. It appears that the dollar’s [rate] can decrease further, considering the pace at which the greenback is being sold in the kerb market,” he said.
In addition, the market was expecting the import bill to shrink on the back of flood-related foreign aid and a decline in global oil prices, which would prevent the balance of payments situation from worsening, Schehzad commented.
Saad bin Naseer, director of financial data and analytics portal Mettis Global, said nothing had changed but “exporters, who were acting like snakes a week ago, are selling crazily”.
He suggested that the government set a one-month deadline for exporters to deposit their proceeds in banks, after which cash should no longer be accepted from them. In addition, if exporters were travelling abroad with foreign currency, they should provide a withdrawal receipt verified by their bank.
Naseer suggested that the government regulate the kerb market “practically” and present a bill in this regard in parliament. It should also take action against those speculating about foreign exchange under strict law, he added.
The PKR had fallen close to an all-time low of Rs239.94 on Sept 22. It has been on an uptrend since last Friday, with its value improving by Rs10.08 or 4.2pc over the last five sessions.
Dawn reported earlier that the fear of further loss compelled individuals and groups to sell out their holdings which created substantial liquidity in the open market bringing down the greenback’s price.