The Pakistani rupee has strengthened against the US dollar in the open-market. The rupee is quoted at 290 for selling and 287 for buying purposes. This is an improvement from the previous rate of 291 for selling and 288 for buying. The International Monetary Fund (IMF) has set a limit for the gap between the open-market rate and the inter-bank market rate, and the rupee is staying within that limit. In the inter-bank market, the currency is hovering around the 288 level. The strengthening of the rupee is attributed to measures taken by law enforcement agencies against illegal exchanges and smugglers of currencies, as well as reforms by the State Bank of Pakistan. Exporters are now selling their proceeds as they no longer expect further depreciation of the rupee. However, there are concerns about Pakistan’s foreign reserves, but the caretaker administration is confident that inflows from international institutions like the World Bank and Asian Development Bank, as well as the IMF’s second tranche of the Stand-By Arrangement, will boost reserves.
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