The Pakistani rupee (PKR) continued to strengthen against the US dollar in the official interbank market, gaining 1.27 rupees on Tuesday. It closed at a rate of PKR 299.89 per USD, compared to the previous day’s closing rate of PKR 301.16 per USD.
During the trading day, the currency reached a high of 299.9 rupees per USD and a low of 299.85 rupees per USD.
However, in the open market, the Pakistani rupee faced some depreciation. Exchange companies were quoting a rate of 297 rupees for buying and 300 rupees for selling the US dollar, which is slightly higher than the previous day’s rates of 295 rupees for buying and 299 rupees for selling.
It’s worth noting that this decrease in the open market rate comes after the Pakistani rupee appreciated by 29 rupees in the past six trading sessions.
The recent strengthening of the PKR can be attributed to reforms introduced by the State Bank of Pakistan (SBP), which aim to streamline and regulate various exchange companies. These reforms also encourage leading banks to establish their own exchange companies to meet the foreign exchange needs of the public.
Additionally, efforts to crack down on currency speculators, hoarders, and smugglers have contributed to the positive sentiment in the currency market.
As a result of these measures, the gap between the open market and interbank rates has significantly narrowed and is now below the level recommended by the International Monetary Fund (IMF).
Furthermore, even the black market for informal money transfers (Hawala/Hundi) is experiencing a notable decline in dollar rates.
Looking ahead, market participants are closely watching the upcoming Monetary Policy Committee (MPC) meeting scheduled for September 14, which could have an impact on the currency exchange rates.
