PKR appreciates by over 2 rupees against USD in intraday trade

September 11, 2023 (MLN): The Pakistani rupee (PKR) continued its upward trajectory as the currency gained over 2 rupees against the US dollar during intraday trade, compared to the previous closing rate of PKR 302.9482 per USD.

The local unit was quoted at PKR 301.75/301.26 [10:51 am PST] with the trades being reported at 300.75 per USD, while in the open market, PKR is being traded at 301/305 per USD.

The appreciation occurred in the interbank market, while the rates in the open market remained unchanged compared to the previous close.

It is worth mentioning that last week, the PKR made a strong comeback as it gained 2.5 rupees in the interbank and 23 rupees in the open market against the greenback.

This upward momentum is attributed to the recent reforms introduced by the State Bank of Pakistan (SBP), aiming to consolidate and transform various types of exchange companies into a single category with a well-defined mandate and higher capital requirements.

These reforms also encourage leading banks to establish wholly owned exchange companies to cater to the legitimate foreign exchange needs of the general public.

Moreover, the ongoing crackdown against speculators, hoarders, and smugglers also boosted the sentiment.

Consequently, the gap between the open market and interbank has fallen significantly below the IMF’s suggested level of 1.25%.

Besides the interbank and Kerb markets, the black market for Hawala/Hundi is also experiencing a significant decline in dollar rates.

Going forward, market participants are closely monitoring the upcoming Monetary Policy Committee (MPC) meeting scheduled for September 14.

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