“Interbank $$ below 300. Welcome relief in controlling inflation for citizens of Pakistan,” investor Abdul Rehman wrote on X. “Structural reforms still needed for long term macroeconomic stability.”

Pakistan has been cracking down on illegal money exchangers and dollar smugglers to control the deprecation of the rupee. Many have attributed the rupee’s appreciation to the government’s action.

The dollar declined by Rs2.16 during the intraday trading in the interbank foreign exchange market, insiders told Aaj News. The greenback was trading at Rs299 in midday trading, compared with the closing of Rs301.16 the previous day.

The Pakistan Stock Exchange recorded lacklustre activity as investors expected a rate hike in the Monetary Policy Committee meeting due this week.

The benchmark KSE-100 Index closed at 45,508.39 after shedding 357.34 points, or 0.78%. The KSE-30 Index closed at 16,062.95 levels as it shed 120.02 points, or 0.74%.

The local unit has made significant gains in open and interbank markets as the government was cracking down against illegal money exchangers and hoarders of dollars.

A day earlier, the greenback was available at Rs300 in the open market. It has declined by Rs24 during the last week.

According to Forex Association of Pakistan Chairman Malik Bostan, the rupee was gaining value against the dollar because exchange companies ‘surrendered’ $20 million.