The Pakistani rupee gained ground against the US dollar Wednesday, starting at 306 in the interbank market.
It was bullish at 12 p.m., climbing as high as 297 after gaining Rs. 9 against the US dollar.
Later, between 1:30 and 2:30 PM, the interbank rate dropped to 297 before anchoring patterns for the rest of the day.
Open market prices across numerous currency counters were in the 295-301 range today, down from 338-335 on Monday.
Rupee Gains More Against US Dollar Since September 4th
Since September 4, the open market rate has recovered by approximately Rs. 41 versus the US dollar.
The PKR rose 0.29 percent to 297.96 at the closing, having gained 86 paisas against the dollar today.
In September, the spread between interbank and open market rates narrowed dramatically by approximately Rs. 41.
Rates have dropped from 337 reported last Monday to as low as 295 and have since sustained minor increases to 301 today.
In addition, the rupee has fallen almost Rs. 77 since January 2023. It has lost more than Rs. 124 against the US dollar since April 2022.
Today’s Gain In Rupee
According to today’s currency rate moves, the PKR has gained more than 80 paisas against the dollar.
Traders and exporters have been flocking to cash registers to cash in on their business receipts since last week, fearing that the dollar rate will continue to fall for the rest of the week.
Meanwhile, the central bank has continued to purchase dollars from interbank markets, while commercial banks have maintained their discipline by executing currency transactions in accordance with the International Monetary Fund’s rupee/dollar cap of 1.25 percent.
The rupee/dollar exchange reached 303 on Thursday, indicating a minor movement in the black money transaction.
Temporary Surge
Although the surge was temporary, sentiment improved. Our channel checks showed that 295 was the maximum level hit in the free market before easing trends at 299 between 11 AM and 1 PM, while the interbank rate later today ended at 297.9.
In a significant step, Forex Association of Pakistan (FAP) President Malik Bostan has stated that if the crackdown on smuggling continues, the US dollar could fall as low as Rs. 250.
The US dollar was nearing Rs. 350 in the open market, according to Bostan, but the crackdown on smugglers and the “dollar mafia” has reversed the Pakistani rupee’s drop.
He predicted that if the interim government’s policies continue in place, the dollar will eventually fall to Rs. 250.
Today’s Interbank Exchange Rates
However, in the interbank market today, the PKR was trading in the green against the majority of the other major currencies.
It increased by 22 paisas versus the Saudi Riyal (SAR), 23 paisas versus the UAE Dirham (AED), 21 paisas versus the Canadian Dollar (CAD), 48 paisas versus the British Pound (GBP), and Rs. 1.07 versus the Euro (EUR).
In today’s interbank currency market, it fell five paisas versus the Australian Dollar (AUD).
To read our blog on “Rupee gains against U$D, trading at below 300 in interbank,” click here.
