The Pakistani rupee continued its winning streak against the US Dollar, marking 22 consecutive days of gains in the interbank market. The day started with the rupee opening trade at 284 against the US Dollar, and it maintained its bullish momentum, reaching as high as 279, a gain of approximately Rs. 3 against the greenback.
Around 1:30 PM to 2:30 PM, the interbank rate eased slightly to the 282 level before stabilizing for the remainder of the day. Over the last 19 sessions, the PKR has appreciated by Rs. 24.36 against the US Dollar.
Open market rates in various currency exchange counters ranged between 278 and 283 today. Since September 4, the open market rate has seen a substantial recovery of around Rs. 56 against the US Dollar.
Also Read: Rupee Tops List as Best-Performing Currency
At the close of the day, the Pakistani rupee had appreciated by 0.33 percent, ending at 282.69, an increase of 93 paisas against the US Dollar for the day.
The gap between interbank and open market rates has significantly narrowed by approximately Rs. 52 over the past month, and there has already been a reduction of around Rs. 5 this week. The rates briefly dipped as low as 278 and have since experienced minor fluctuations, reaching 283 today.
It’s important to note that the rupee’s value has declined by nearly Rs. 63 since January 2023 and by over Rs. 110 against the US Dollar since April 2022. In terms of today’s exchange rate movements, the PKR gained over 90 paisas against the US Dollar.
In a significant development, fuel prices in Pakistan are expected to witness a substantial decrease due to this week’s global oil price trends, coupled with the remarkable appreciation of the Pakistani Rupee and Russia’s decision to lift the ban on pipeline diesel exports. Initial estimates suggest that per-liter fuel prices for both petrol and diesel are set to fall significantly below 300 Pakistani Rupees on October 15.
Assuming that international oil prices and the Pakistani Rupee remain stable over the next ten days, a report by Arif Habib Limited anticipates local petrol and diesel prices to decrease by Rs. 41 per liter and Rs. 19 per liter, respectively, in the next fortnightly pricing effective from October 16, 2023.
In addition to its gains against the US Dollar, the Pakistani rupee also strengthened against most other major currencies in the interbank market today. It appreciated by two paisas against the Canadian Dollar (CAD), nine paisas against the Euro (EUR), 11 paisas against the Australian Dollar (AUD), 24 paisas against the Saudi Riyal (SAR), and 25 paisas against the UAE Dirham (AED). However, it depreciated by 57 paisas against the British Pound (GBP) in today’s interbank currency market.