The Pakistani rupee surged even higher against the US Dollar today after opening trade at 305 in the interbank market.
At 12 PM, it was bullish, rising as high as 303 after gaining ~Rs. 3 against the greenback, in tandem with opening-bell bulls which saw open market rates recover massively during the session.
Later, the interbank rate climbed to the 302 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. 13.61 against the PKR.
From 338-335 seen on Monday, open market rates across multiple currency counters stood in the 303-306 range today.
At close, the PKR appreciated by 0.66 percent to close at 302.95 after gaining Rs. 1.99 against the dollar today.
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The gap between interbank and open market rates has massively shrunk by roughly Rs. 35 this week. From 337 reported on Monday, the rates have gone down by up to Rs. 36 to as low as 301 and have since continued brief spikes between 302-307 today. Traders have reported a heavy convergence of sellers eager to cash in before the rupee/$ rate settles on a level likely between 294-302 by next week, however, anxious sentiments still exist which may push the rupee below 310 again.
As reported by ProPakistani on Thursday, the black market rate has dropped near to the Bank rate but the government’s latest crackdown has driven these players underground; so reporting of street rates remains largely blank. Smuggling channels have broken off the relaying of buy/sell orders to steer clear of state crackdown, for now.
Pertinently, the rupee is down nearly Rs. 83 since January 2023. Since April 2022, it is down over Rs. 130 against the greenback. As per exchange rate movements witnessed today, the PKR has gained over Rs. 1.9 against the dollar.
It is noteworthy that the State Bank of Pakistan (SBP) this week decided to introduce structural reforms in the Exchange Companies sector. The minimum capital requirement for Exchange Companies has been increased from Rs. 200 million to Rs. 500 million. Meanwhile, leading banks actively engaged in foreign exchange business will establish wholly owned Exchange Companies to cater to the legitimate foreign exchange needs of the general public.
The PKR was green against all of the other major currencies in the interbank market today. It gained 91 paisas against the Australian Dollar (AUD), Rs. 1.7 against the British Pound (GBP), Rs. 1.77 against the Canadian Dollar (CAD), and Rs. 2.18 against the Euro (EUR).
Moreover, it gained 53 paisas against the Saudi Riyal (SAR) and 54 paisas against the UAE Dirham (AED) in today’s interbank currency market.
