The Pakistani rupee maintained its upward trajectory against the US dollar in the open market on Tuesday, an appreciation that comes in tandem with the local currency’s improvement in the inter-bank.
Currency dealers Business Recorder reached out to said the rupee was quoted at 280 for selling and 277 for buying purposes for customers.
At the end of trading on Tuesday, the currency closed at the same levels, according to data provided by the Exchange Companies Association of Pakistan (ECAP). The rate is once again below the one in the inter-bank market.
The ongoing appreciation comes after the State Bank of Pakistan (SBP) ramped up efforts to clip the wings of the high-flying dollar and announced a list of “structural reforms” last month, targeting the Exchange Companies (ECs).
Apart from the central bank measures, the caretaker setup also announced taking administrative steps to tighten the screws around smuggling and hoarding of currency and as a result, countrywide raids were reported with dozens of illegal currency exchanges barred from running operations and foreign currency worth millions confiscated.
The SBP also suspended the authorisation of four exchange companies in the month of September.
“Record monthly gain for PKR, close to 17% against the US dollar, in the open market,” said Mohammed Sohail, Chief Executive Officer (CEO) Topline Securities, on Tuesday.
“This is probably the biggest one-month gain of local currency in the open market, especially at a time when the USD is also getting stronger against other currencies.
“This has happened only due to strict compliance of local laws which were not being followed by smugglers, currency investors, etc.”
Sohail was of the view that the sustainability of the appreciation run depends on how talks with the International Monetary Fund (IMF) in November pan out and how Pakistan manages to increase its foreign exchange reserves.
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