The Pakistani rupee's value has improved by 0.6% in three sessions as a crackdown against smugglers and hoarders starts to pay off.
The PKR gained 77 paisa to trade at 283.45 per dollar in the interbank market on Friday.
Representatives of exchange companies met Director General of Counter‑Intelligence (DGC) General Faisal Naseer at the Inter-Services Intelligence of Pakistan (ISI) headquarters in Islamabad on Tuesday. They were informed that a parallel foreign exchange market had become operational and the greenbacks were being smuggled to Afghanistan and Iran.
Following the meeting, the government launched a crackdown against those involved in hoarding and smuggling dollars, as a result of which the supply of the greenbacks improved and the rupee's value rose.
The PKR, which had been trading at 288.6 per dollar in the open market, rose to 286.55. Meanwhile, its value, which had fallen to 285 per dollar in the interbank market, also improved.
Analysts believe the rupee will likely strengthen further following S&P's upgradation of Pakistan's credit rating. The country's foreign exchange reserves are at a comfortable level and key macroeconomic indicators are improving.
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