In the interbank market, the Pakistani rupee has won eight straight days versus the US Dollar. This exchange rate rise has interested merchants and economists.
The rupee opened at 306 versus the US Dollar, but it swiftly gained speed. By 12 PM, it had risen to 297, a spectacular Rs. 9 gain versus the dollar.
The interbank rate fluctuated during the day. Between 1:30 and 2:30 PM, it fell to 297 before settling for the day.
Open market prices versus the US Dollar ranged from 338 to 335 earlier in the week, but this favorable rise is notable. These rates improved today to 295–301. Since September 4, the open market rate has recovered Rs. 41 versus the US Dollar.
After trading, the Pakistani Rupee rose 0.29 percent to 297.96 and gained 86 paisas versus the dollar.
Recent developments include a Rs. 41 reduction in the spread between interbank and open market rates in September. Rates have dropped from 337 last Monday to 295, with rare jumps to 301.
Keep the big picture in mind, however. The Pakistani Rupee has fallen almost Rs. 77 since January 2023 and over Rs. 124 against the US Dollar since April 2022. Although the currency gained today, the overall trend shows its problems.
Traders and exporters have been closely watching these currency swings and are ready to convert their business proceeds, expecting the US Dollar to fall more this week. The central bank has been buying dollars from the interbank market, and commercial banks have followed the IMF’s 1.25 percent rupee-to-dollar ceiling.
Thursday witnessed a temporary exchange rate rise to 303 on the underground market. Rates stabilized around 299 between 11 AM and 1 PM, and the interbank rate closed at 297.9 later in the day.
Malik Bostan, President of the Forex Association of Pakistan (FAP), is optimistic that the US Dollar might sink below Rs. 250 if the smuggling crackdown continues. He credited the recent exchange rate improvements to curbing smugglers and the “dollar mafia,” which helped revive the Pakistani Rupee.
Today’s interbank market saw the Pakistani Rupee gain 22 paisas against the Saudi Riyal (SAR), 23 against the UAE Dirham (AED), 21 against the Canadian Dollar (CAD), 48 against the British Pound (GBP), and Rs. 1.07 against the Euro. However, it lost five paisas versus the Australian Dollar.
The recent performance of the Pakistani Rupee has fuelled expectations for a more stable currency.