The Pakistani rupee rose 14th day in a row against the US Dollar today after opening trade at 292 in the interbank market.
At 11:30 PM, it was bullish, rising as high as 291 after gaining ~Rs. 1 against the greenback.
Later, the interbank rate eased to the 292 level between 1:30 PM and 2:30 PM before anchoring trends at 291 for the remainder of the day.
In the last 13 sessions, the PKR has gained Rs. 15.3 against the greenback.
Open market rates across multiple currency counters stood in the 292-295 range today. Since September 4, the open market rate has recovered massively by roughly Rs. 47 against the greenback.
At close, the PKR appreciated by 0.35 percent to close at 291.76 after gaining Rs. 1.01 against the dollar today.
Exchange companies have continued to comply with state agencies in obliterating speculation and allowing the interbank/open rupee per dollar rate to converge. Meanwhile, large banks have started setting up exchange companies in a bid to make currency deals that are transparent and fully comply with the International Monetary Fund’s premium cap of 1.25 percent. Currently, the rupee/$ interbank/free rate stands at roughly 1 percent.
The gap between interbank and open market rates has massively shrunk by roughly Rs. 47 in September. From 337 reported last Monday, the rates have gone down to as low as 291 and have since continued brief spikes till 295 today.
Pertinently, the rupee is down nearly Rs. 72 since January 2023. Since April 2022, it is down over Rs. 119 against the greenback. As per exchange rate movements witnessed today, the PKR has gained over Rs. 1 against the dollar.
In a key development, the foreign exchange reserves held by the central bank increased by $56 million, breaking the streak of four consecutive declines. As of September 15, SBP reserves stand at $7.695 billion. Despite the increase during the week, the reserves held by the central bank have fallen by over $1 billion since July 14 when reserves stood at $8.727 billion.
The PKR was green against most of the other major currencies in the interbank market today. It gained 26 paisas against the Canadian Dollar (CAD), 27 paisas against the Saudi Riyal (SAR), 27 paisas against the UAE Dirham (AED), Rs. 1.37 against the Euro (EUR), and Rs. 2.31 against the British Pound (GBP).
Conversely, it lost 10 paisas against the Australian Dollar (AUD) in today’s interbank currency market.
It seems to be artificial as the effect of decrease not passing to the common man. And where usd is available at this price? Even banks deduct at open market rate and remit at lower rate to legally loot the expats and freelancers.