The Pakistani rupee continued its good run against the US Dollar today after opening trade at 292 in the interbank market.
At 12 PM, it was bullish, rising as high as 291 after gaining ~Rs. 5 against the greenback.
Later, the interbank rate eased to the 294 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 292-299 range today. Since September 4, the open market rate has recovered massively by roughly Rs. 45 against the greenback.
At close, the PKR appreciated by 0.36 percent to close at 294.9 after gaining Rs. 1.05 against the dollar today.
Markets exhibited positive growth in continuation of the new week, effectively snubbing Monday’s exchange rate projections for the 2023-24 period. According to Topline Securities, the Pakistani Rupee (PKR)/US Dollar (USD) parity in the interbank market is expected to be in the range of Rs. 320-340 by June 2024.
In its PKR outlook report, the brokerage firm highlighted that recent administrative measures have resulted in the PKR gaining value in both the official interbank market and the open market.
It said that the recent rally in USD after August 14 was mainly driven by the open and black market where the premium (open market vs. interbank rate) increased from 1-2 percent to 6-7 percent.
Based on a recent poll of key market participants conducted by Topline Securities, 38 percent of the participants anticipate PKR/USD parity to range from Rs. 320-340 by June 2024.
The gap between interbank and open market rates has massively shrunk by roughly Rs. 45 in September. From 337 reported last Monday, the rates have gone down to as low as 292 and have since continued brief spikes till 299 today.
Pertinently, the rupee is down nearly Rs. 74 since January 2023. Since April 2022, it is down over Rs. 121 against the greenback. As per exchange rate movements witnessed today, the PKR has gained over Rs. 1 against the dollar.
The PKR was green against most of the other major currencies in the interbank market today. It gained 23 paisas against the Australian Dollar (AUD), 27 paisas against the Saudi Riyal (SAR), 28 paisas against the UAE Dirham (AED), 34 paisas against the Euro (EUR), and Rs. 1.08 against the British Pound (GBP).
Conversely, it lost 15 paisas against the Canadian Dollar (CAD) in today’s interbank currency market.