The Pakistani rupee has continued its remarkable upward trajectory against the US dollar in the interbank market, marking a promising start to the trading week. The gap between the interbank rate and the dollar's value has further narrowed as the American currency depreciated by Rs1.25 paisas on Monday morning. At the opening of Monday's trading session in the interbank currency market, the US dollar was being exchanged at Rs295.60. Over the course of the last week, the Pakistani rupee exhibited a robust performance, appreciating by 1.43% or Rs4.31 against the dollar. This notable strengthening of the rupee is attributed to reduced demand for dollars in the parallel or unofficial market.

Financial technology company Tresmark, in a statement highlighted the improved liquidity in the forex market. Exporters have been actively participating by selling both in ready and forward markets, coupled with an increase in daily remittances.  One of the significant factors contributing to this positive trend is the notable improvement in Pakistan's current account deficit, which measures the gap between foreign exchange inflows and outflows.

Credit: Independent News Pakistan (INP)