Rupee Leads Asian Currency Rankings with 2.5% Surge Against Dollar in Past Year
In the past year, the Pakistani rupee has become the best-performing currency in Asia, growing by 2.5 percent against the US dollar. This improvement comes as Pakistan’s economic outlook gets better, thanks to a $3 billion loan from the International Monetary Fund (IMF) and reforms in the foreign exchange market.
The rupee’s rise is due to the IMF loan and strict measures taken by the government to control spending and manage money better. According to Topline Securities, the rupee has strengthened by 2.5 percent against the dollar from May 17, 2023, to May 17, 2024. This is more than the Sri Lankan rupee, which grew by 2.2 percent during the same period.
Muhammad Sohail, CEO of Topline Securities, said, “After years of ups and downs, the Pakistani Rupee is finally becoming more stable. Over the past year, it’s been the top-performing currency among Asian countries.”
The government’s efforts, along with support from international lenders, have helped stabilise the rupee. These measures have also improved Pakistan’s foreign exchange reserves and current account balance. Additionally, steps taken to control illegal currency activities and reforms in the exchange business have reduced pressure on the rupee. However, there’s speculation that the rupee might weaken before Pakistan secures a new loan from the IMF, as currency depreciation is often a requirement for such loans. Despite this, the rupee is expected to remain steady until June, after which it might face downward pressure.
