In September, the Pakistani rupee turned out to be the most profitable currency in the world, Bloomberg reports. The rupee appreciated more than 6% against the dollar over the month, while most currencies fell against the dollar amid expectations that U.S. interest rates will remain high for a long time, the publication reported.

Bloomberg does not cite the currencies that ranked second and third in September, but Reuters estimates they were the Hong Kong dollar and the Colombian peso, +0.3% and +0.1%, respectively.

The rupee fell to a record low in trading on September 5. The dollar exchange rate on the international forex market was climbing to a record high of 307.9 rupees during trading. Pakistan's currency recovered losses in the rest of September. As of 5:58 p.m. on Thursday, the dollar exchange rate was down to 287.6 rupees per dollar (-1.1%). The currency market of Pakistan will be closed on Friday, September 29, due to a public holiday.

The strengthening of Pakistan's currency was seen in part due to measures taken by the government to curb illegal dollar trading, i.e. sales of dollars without any records and remittances through unofficial channels, the publication said.

CEO of Alpha Beta Core Solutions Pvt. Ltd. Khurram Shehzad said that the withdrawal of dollars in many cases occurred through illegal channels, including the use of alternative remittance systems such as hawala and hundi. These remittance systems are common in South Asia.