This week kicked off with the Pakistani Rupee making notable advances against the US Dollar, opening at a rate of 280 in the interbank market. Despite maintaining relative stability against the greenback, the Rupee faced challenges in witnessing significant movements, mainly due to a pronounced scarcity in the open market.
The blend of ongoing economic and political turmoil, alongside dwindling trader confidence in the current economic milieu, led to the evaporation of the US Dollar supply in today’s trading session.
The exchange rate in the interbank market hovered around 280 for most of the day, eventually settling at 279. Meanwhile, the open market rates for the currency fluctuated within the 279 to 280 range.
By the end of the day, the Rupee appreciated by 0.06 percent, achieving a 16 paisa gain to close at 279.2 against the Dollar. Since the start of the fiscal year, the Rupee has seen an appreciation of 2.42 percent, despite facing a decline of nearly Rs. 52 since January 2023 and a decrease of Rs. 96.3 against the Dollar since April 2022.
Market insiders highlighted the acute shortage of the US Dollar in the open market, with it not being available for even Rs. 300-305.
This shortage, attributed to the prevailing uncertainties within the country, has led to rate volatility and scarcity. Nevertheless, there is anticipation of a potential change in the situation shortly.
In today’s interbank currency market, the Pakistani Rupee displayed strength against several other major currencies. It saw a gain of four paisas against the Saudi Riyal (SAR) and the UAE Dirham (AED), eight paisas against the British Pound (GBP), 23 paisas against the Euro (EUR), and a significant 78 paisas against the Canadian Dollar (CAD), showcasing a positive trajectory amidst the fluctuating economic landscape.