The Pakistani rupee surged even higher against the US Dollar today after opening trade at 306 in the interbank market.
At 12 PM, it was bullish, rising as high as 300.75 after gaining ~Rs. 2 against the greenback, in tandem with opening-bell bulls which saw open market rates recover into the 290 category for the first time since May 2023.
Later, the interbank rate eased to the 301 level between 1:30 PM and 2:30 PM before anchoring trends for the remainder of the day.
Since the caretaker government came to power, the USD has gained Rs. 11.82 against the PKR.
From 338-335 seen on Monday, open market rates across multiple currency counters stood in the 297-299 range today. Since September 4, the open market rate has recovered massively by roughly Rs. 38 against the greenback.
At close, the PKR appreciated by 0.59 percent to close at 301.16 after gaining Rs. 1.79 against the dollar today.
The gap between interbank and open market rates has massively shrunk by roughly Rs. 38 in September. From 337 reported last Monday, the rates have gone down to as low as 297 and have since continued brief spikes till 299 today. Traders have reported a heavy convergence of sellers and exporters eager to cash in before the rupee/$ rate settles on a level likely between 294-302 this week, however, anxious sentiments still exist which may push the rupee below 300 again.
It has been indicated that the central bank is buying dollars from interbank.
As reported by ProPakistani last week, the black market has been driven underground and is nonexistent; so reporting of street rates remains largely blank.
Pertinently, the rupee is down nearly Rs. 81 since January 2023. Since April 2022, it is down over Rs. 128 against the greenback. As per exchange rate movements witnessed today, the PKR has gained over Rs. 1.7 against the dollar.
It is noteworthy that the PKR resurgence is due to the government’s latest action to curb the illegal trade of dollars in hot channels like Pehsawar. The move has allowed the rupee/$ rate to correct itself by over Rs. 35, in tandem with the International Monetary Fund’s 1.25 percent cap on the PKR/USD exchange rate.
Since last week, the federal government alongside state agencies has initiated a massive crackdown against black market dealers which helped boost the PKR’s valuation. In the past few days, scores of exporters have frequented cash counters to exchange dollars in bulk. If continued, the prevalent momentum could see the market correct itself by another Rs. 10 in the coming days or weeks.
The PKR was green against all of the other major currencies in the interbank market today. It gained one paisa against the Australian Dollar (AUD), 38 paisas against the Canadian Dollar (CAD), Rs. 1.32 against the British Pound (GBP), and Rs. 1.46 against the Euro (EUR).
Moreover, it gained 47 paisas against the Saudi Riyal (SAR) and 49 paisas against the UAE Dirham (AED) in today’s interbank currency market.
