After starting the day at 296 in the interbank market, the Pakistani rupee gained further versus the US dollar as the week came to a conclusion.
Rupee Advances Against US Dollar for the Ninth Day in a Row
It was bullish at 12 PM, climbing as high as 295 after gaining Rs. 1 in relation to the US dollar.
Later, between 1:30 and 2:30 PM, the interbank rate dropped to the 296 level before anchoring patterns for the rest of the day.
Open market rates across several currency counters ranged from 293-298 today, down from 338-335 seen on Monday. The open market rate has significantly increased by about Rs. 43 versus the US dollar since September 4.
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The Pakistani rupee gained Rs. 1.11 versus the dollar Thursday, rising 0.37 percent to settle at 296.85.
Following the central bank’s market assessment, which resulted in the benchmark interest rate remaining at 22 percent, sentiments improved.
In September, the difference between interbank and open market rates significantly decreased by about Rs. 43. The rates have decreased from the 337 reported last Monday to as low as 293 and have since fluctuated briefly until 298 today.
Relevantly, since January 2023, the rupee has lost about 76 rupees. It has lost more than Rs. 123 value against the US dollar since April 2022. The PKR has increased by more than 1 rupee in relation to the dollar, according to today’s exchange rate moves.
Following the opening of the Torkham border, the black market trade increased on Friday, reaching a high of 302 rupees to one dollar. Although the surge was temporary, attitudes did improve. According to our channel checks, the free market peaked at 302 before easing down at 298 at 11 AM and 1 PM, with the interbank rate closing the day at 296.8.
The central bank’s foreign exchange reserves decreased for the fourth week in a row, which was a significant trend. The SBP’s foreign exchange holdings were valued at $7.639 billion as of September 8. The central bank stated in a statement that debt repayments were the primary cause of the fall.
Since July 14, when reserves were at $8.727 billion, the central bank’s holdings have decreased by more than $1 billion.
At $ 13.079 billion, the nation’s total liquid foreign currency reserves—including net reserves held by institutions other than the SBP—were down $48 million from the previous week.
On the interbank market today, the PKR was in the green relative to the majority of the other major currencies. It increased in value versus the Saudi Riyal (SAR), UAE Dirham (AED), Canadian Dollar (CAD), British Pound (GBP), and Euro (EUR) by 29 paisas, 40 paisas, Rs. 3.18, and Rs. 3.5, respectively.
