The rupee's fall finally made a halt, as the currency registered a marginal improvement against the US dollar after two weeks of turbulence that saw it depreciate 13%.
As per the State Bank of Pakistan (SBP), the rupee closed at 239.37, a day-on-day gain of Rs0.57 or 0.24%, against the greenback.
However, in the open-market, the currency inched close to the 250 level. Official rates announced by the Exchange Companies Association of Pakistan (ECAP) said the rupee was traded in the range of 246-248. This itself is a difference of around Rs6-8 between the inter-bank and open-market rates, far bigger than the usual spread that stays in a range of Rs1-3, depending on volatility.
Rupee ends 10-session depreciation run, closes at 239.37
Talking to Business Recorder, Zafar Paracha, General Secretary of ECAP, said there are "reports that the greenback was being smuggled to Afghanistan, which created additional demand for the dollar in the open-market".
“However, as the currency has appreciated today in the inter-bank following reports of Pakistan’s Chief of Army Staff (COAS) General Qamar Javed Bajwa seeking US help for early disbursement of the next tranche of the International Monetary Fund (IMF) programme, market sentiment improved."
Paracha said the open-market rates are expected to improve in the coming days if the rupee stabilises in the inter-bank market, bringing down the spread.
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