The Pakistani rupee strengthened further against the US dollar today, starting at 305 in the interbank market.
It was bullish at 12 p.m., reaching as high as 303 after gaining Rs. 3 versus the US dollar, in tandem with opening-bell bulls who witnessed open market rates recover substantially during the session.
Later, between 1:30 and 2:30 PM, the interbank rate rose to 302 before anchoring trends for the rest of the day.
The USD has gained Rs. 13.61 versus the PKR since the caretaker government took office.
Rupee Depreciation on Monday in Open Market
Open market rates across numerous currency counters were in the 303-306 range today, down from 338-335 on Monday.
After winning Rs. 1.99 against the dollar today, the PKR gained 0.66 percent to close at 302.95.
This week, the spread between interbank and open market rates has reduced by approximately Rs. 35.
From 337 recorded on Monday, rates have dropped by up to Rs. 36 to as low as 301, with intermittent jumps between 302-307 today.
Traders report a large convergence of sellers anxious to cash in before the rupee/dollar exchange settles on a level anticipated between 294-302 by next week.
However, fearful attitudes remain, and the rupee may fall below 310 once more.
Caretaker Government’s Crackdown on Black Market
As reported on Thursday, the black market rate has dropped close to the bank rate, but the government’s new crackdown has forced these players underground, leaving reporting of street rates virtually blank.
To avoid a state crackdown, smuggling channels have cut off the relaying of buy/sell orders for the time being.
The currency has fallen almost Rs. 83 since January 2023. It has lost more than Rs. 130 versus the US dollar since April 2022.
According to today’s exchange rate moves, the PKR has gained more than Rs. 1.9 against the USD.
It is worth noting that the State Bank of Pakistan (SBP) agreed this week to implement structural changes in the Exchange Companies sector.
The required minimum capital for Exchange Companies has been raised from Rs. 200 million to Rs. 500 million.
Rupee Appreciation in Interbank as of Sept 08
Meanwhile, prominent banks actively engaged in the foreign exchange market will form wholly owned Exchange Companies to serve the general public’s lawful foreign exchange demands.
The PKR was trading in the green versus all of the major currencies in the interbank market today.
It increased by 91 paisas against the Australian Dollar (AUD), 1.7 rupees against the British Pound (GBP), 1.77 rupees against the Canadian Dollar (CAD), and 2.18 rupees against the Euro (EUR).
Furthermore, in today’s interbank currency market, it gained 53 paisas versus the Saudi Riyal (SAR) and 54 paisas against the UAE Dirham (AED).
To read our blog on “US Dollar traded at Rs. 331 yesterday in open market,” click here.