PKR trades 12 paisa higher against USD in interbank, strengthens by 10 rupees in open market

September 06, 2023 (MLN): The Pakistani rupee (PKR) appreciated by 12.01 paisa against the US dollar in Wednesday's interbank session as the currency settled the trade at PKR 306.9795 per USD, compared to the previous session's closing of PKR 307.0996 per USD.

The currency saw an intraday high (bid) of 307.25 and a low (ask) of 307.

In the open market, Exchange Companies quoted the dollar at 310 for buying and 313 for selling.

This appreciation was a result of the ongoing crackdown against speculators, hoarders, and smugglers. Consequently, the gap between the open market and interbank has fallen to 0.9% below the IMF’s suggested level of 1.25%.

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

According to sources, the greenback is currently trading at PKR 318/323 per USD in the black market, compared to the highest halwa rate was 338/342 last Friday.

Previously, the rising demand for dollars due to speculation and smuggling had continually widened the gap between open market and interbank rates, causing significant concern.

On September 4, 2023, the gap surged to Rs25.30 per USD or 8.03%, far exceeding the IMF's recommended threshold.

It is safe to say that the government's initiatives are effectively yielding results in curbing speculative activities in the open market without requiring any intervention on the interbank side.

The situation could further improve if the government takes similar initiatives against gold smuggling, as individuals who cannot purchase dollars may now opt to invest their money in smuggled gold.

In comparison to major currencies, PKR gained 65.1 Paisa against the Euro, closing at 329.4812 compared to the previous value of 330.1322.

The British Pound became more expensive by 23.31 Paisa closing at 385.4589 compared to 385.2258 from a day ago.

The Swiss franc saw losses of 1.03 Rupees, closing at 344.9209 compared to 345.9499 from the previous session.

Against the Japanese Yen, PKR gained 0.74 Paisa, closing at 2.0824 versus 2.0898 a day ago.

The Chinese Yuan lost 3.03 Paisa, closing at 42.0134 against 42.0437 from the previous session.

The Saudi Riyal decreased in value by 3.38 Paisa from 83.6089 a day ago to 83.5751.

The U.A.E Dirham closed at 81.8361 with a loss of 3.42 Paisa from its value of 81.8703 a day ago.

During the current financial year, PKR has depreciated against the Dollar by 20.99 Rupees or 6.84%. While the current calendar year has seen PKR depreciate by 80.55 Rupees or 26.24%.

In the Money Market, the benchmark 6-month Karachi Interbank Bid and Offer rates inched up by 7.0 bps to 23.35 and 23.6 percent.

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