Rupee sees strong recovery, dollar depreciates by Rs7 in open market

Rupee sees strong recovery, dollar depreciates by Rs7 in open market
Source: File

Karachi: In the open market, the Pakistani rupee continued to appreciate against the US dollar, reaching 318 during Wednesday’s trading session.

Pakistan currency was being traded at 318 for selling and 315 for buying purposes for customers in the open-market, down Rs7 from Tuesday’s levels of 325 and 322.

The Exchange Companies Association of Pakistan (ECAP) also cited rates at Rs313 and Rs316 during trading.

On the other hand, in the inter-bank market, the rupee remained stable and was trading at 306.98, against the US dollar, from yesterday’s close of 307.10. 

According to market experts this break in the currency’s decline in the open market is linked to a recent meeting between Chief of Army Staff (COAS) Asim Munir and the business community held on Sunday. During this meeting, the army chief discussed the government’s economic plans and efforts to fight smuggling and speculative activities.

It is pertinent to note that under the International Monetary Fund (IMF) program, the exchange rate gap between the inter-bank and open markets needs to be around 1.25%, this condition referred as the premium by the IMF in its country report on Pakistan published after the Stand-By Arrangement’s approval by the Executive Board.

Meanwhile, Pakistani rupee continued to be under pressure over Pakistan’s rising imports as restrictions ease, a widening current account deficit, and falling foreign exchange reserves.