The Pakistani rupee rose higher against the US Dollar today after opening trade at 296 in the interbank market.
At 12 PM, it was bullish, rising as high as 294 after gaining ~Rs. 2 against the greenback.
Later, the interbank rate eased to the 295 level between 1:30 PM and 2:30 PM before anchoring trends for the remainder of the day.
Open market rates across multiple currency counters stood in the 294-298 range today. Since September 4, the open market rate has recovered massively by roughly Rs. 44 against the greenback.
At close, the PKR appreciated by 0.3 percent to close at 295.94 after gaining 90 paisas against the dollar today.
Markets resumed positive growth in the new week, effectively snubbing last week’s petrol bomb which saw MS spike to Rs. 331.38, while the price of high-speed diesel went up by Rs. 17.34 per liter to Rs. 329.18.
The gap between interbank and open market rates has massively shrunk by roughly Rs. 44 in September. From 337 reported last Monday, the rates have gone down to as low as 294 and have since continued brief spikes till 299 today.
Pertinently, the rupee is down nearly Rs. 75 since January 2023. Since April 2022, it is down over Rs. 122 against the greenback. As per exchange rate movements witnessed today, the PKR has gained over 90 paisas against the dollar.
In a key development, Pakistan’s Real Effective Exchange Rate (REER) declined by 1.5 percentage points to 90.1 in August 2023.
Pakistan’s current REER value of 90.1 suggests that exports offer good returns. The federal government lifted all restrictions on imports 3 months ago and it will take some time until manufacturers normalize production and bolster exports.
The PKR was green against the other major currencies in the interbank market today. It gained 24 paisas against the Saudi Riyal (SAR), 24 paisas against the UAE Dirham (AED), 69 paisas against the Canadian Dollar (CAD), Rs. 2.52 against the British Pound (GBP), and 75 paisas against the Euro (EUR).
Moreover, it gained Rs. 1.24 against the Australian Dollar (AUD) in today’s interbank currency market.