KARACHI: The Pakistani rupee continued to strengthen against the US dollar on Thursday, marking the 20th consecutive day of gains in both the interbank and open markets.
According to observers, the trend was driven by expectations of increased remittances, positive economic indicators, and the recent agreement between Pakistan and China to expand CPEC’s second phase with five new corridors.
A steady rise in the country’s foreign exchange reserves and exporters selling dollars in the market for future needs also kept the greenback under pressure.
During intraday trading in the interbank market, the dollar at one point dropped by 20 paisas to Rs281.50. However, as demand picked up amid improved supply, the currency closed at Rs281.66 — a decline of 4 paisas from the previous day.
In the open market, the dollar also slipped, losing 10 paisas to close at Rs283.20.
On the other hand, the Pakistan Stock Exchange (PSX) closed at yet another all-time high on Thursday as positive economic data, stability in the rupee and optimism over CPEC Phase-II kept investor sentiment upbeat.
The benchmark KSE-100 index climbed 464 points, or 0.30 per cent, to settle at 152,666 after touching an intraday high of 1,209 points.
Trading remained volatile as profit-taking surfaced during the session, but the market held its ground and finished on a strong note.
“Stocks closed new all time high as investor weigh upbeat economic data on fertilizer, oil and cement sales for Aug’25,” Arif Habib Commodities CEO Ahsan Mehanti told HUM News English.
He added: “Government deliberations to resolve power sector circular debt crises, rupee stability and upbeat cotton production data for Aug’25 played catalyst role in record bullish close at PSX.”
Brokerage Ismail Iqbal Securities said the index managed to withstand profit-taking pressures, setting fresh records both intraday and at the close.