The Pakistani rupee rose 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 297 after gaining ~Rs. 9 against the greenback.
Later, the interbank rate eased to the 297 level between 1:30 PM and 2:30 PM before anchoring trends for the remainder of the day.
From 338-335 seen on Monday, open market rates across multiple currency counters stood in the 295-301 range today. Since September 4, the open market rate has recovered massively by roughly Rs. 41 against the greenback.
At close, the PKR appreciated by 0.29 percent to close at 297.96 after gaining 86 paisas against the dollar today.
The gap between interbank and open market rates has massively shrunk by roughly Rs. 41 in September. From 337 reported last Monday, the rates have gone down to as low as 295 and have since continued brief spikes till 301 today.
Pertinently, the rupee is down nearly Rs. 77 since January 2023. Since April 2022, it is down over Rs. 124 against the greenback. As per exchange rate movements witnessed today, the PKR has gained over 80 paisas against the dollar.
Since last week, traders and exporters have been frequenting cash counters to cash in on their business receipts fearing the greenback rate to maintain a downward trend for the remainder of this week. Meanwhile, the central bank has continued to buy dollars from interbank while commercial banks continue in discipline by conducting currency business in tandem with the International Monetary Fund’s rupee/$ cap of 1.25 percent.
Thursday saw a slight movement in the black money trade with the rupee/$ rate going as high as 303. The spike was brief but sentiments improved. Our channel checks confirmed that 295 was the highest level reached in the free market before easing trends at 299 between 11 AM and 1 PM, while the interbank rate closed at 297.9 later today.
In a key development, Forex Association of Pakistan (FAP) President Malik Bostan has claimed that the US dollar could fall to as low as Rs. 250 if the crackdown against smuggling continues.
Bostan said that the US dollar was nearing Rs. 350 in the open market but the crackdown against smugglers and the “dollar mafia” has reversed the Pakistani rupee’s decline.
He claimed that if the measures taken by the interim government remain in force, the dollar will eventually fall to Rs. 250.
The PKR was green against most of the other major currencies in the interbank market today. It gained 22 paisas against the Saudi Riyal (SAR), 23 paisas against the UAE Dirham (AED), 21 paisas against the Canadian Dollar (CAD), 48 paisas against the British Pound (GBP), and Rs. 1.07 against the Euro (EUR).
Conversely, it lost five paisas against the Australian Dollar (AUD) in today’s interbank currency market.