KARACHI: Pakistani rupee extended gains against the US dollar in the interbank and open markets by Rs2 (+0.65 percent). The State Bank of Pakistan (SBP) said in a tweet that the rupee opened at 304.94 against the dollar in the interbank market and closed at 302.95, showing an appreciation of Rs1.99 (+0.66 percent). The rupee appreciated against the US dollar in the interbank market by Rs2.52 this week, while it depreciated by Rs16.96 during the current fiscal year 2023-24, and Rs75.52 in the current year. TLTP
Meanwhile in the open market, the rupee was quoted in the range of 301-305 against the dollar in the open market as compared to 304-307 a session earlier. The local unit appreciated against the greenback in the open market by Rs6 on Thursday, Rs13 on Wednesday and Rs8 on Tuesday last. Overall, the rupee has appreciated by Rs29 in the last four sessions.
With the latest appreciation, the gap between the interbank and open market has narrowed to 0.57 percent. Being under an International Monetary Fund (IMF) programme, the exchange rate gap between the inter-bank and open markets – called the premium by the IMF in its country report on Pakistan published after the Stand-By Arrangement’s approval by the Executive Board – needs to be around 1.25 percent.
Currency dealers attributed the current row of appreciation of the rupee to the Chief of Army Staff (COAS) Asim Munir’s meetup with the business community on Sunday last. During the meeting, the army chief discussed the government’s economic plans and intentions to quell smuggling and speculative activity.
The development comes two days after the central bank decided to introduce structural reforms in the exchange companies’ sector in order to provide “better services to the general public and bring transparency and competitiveness”.
