Open market: rupee sees strong recovery against US dollar

  • Gap with inter-bank market narrows, but still over IMF-prescribed limit
Published September 5, 2023

The Pakistani rupee made significant recovery against the US dollar in the open-market, and was selling at 325 during trading on Tuesday, as gap with the inter-bank rate narrowed.

Dealers Business Recorder reached out to said the rupee was being quoted at 325 for selling and 322 for buying purposes for customers in the open-market, down by Rs5 from Monday’s levels of 330 and 327.

The Exchange Companies Association of Pakistan (ECAP) also quoted rates at Rs325 and Rs322 during trading. At the end of the session, it said the rates were Rs323 and Rs320 for selling, and buying, respectively.

However, in the inter-bank market, the rupee remained under pressure and settled at a record low of 307.1 against the US dollar.

Dealers attributed the halt in currency’s fall in the open market to Chief of Army Staff (COAS) Asim Munir’s recent meetup with the business community on Sunday.

During the meeting, the army chief discussed the government’s economic plans and intentions to quell smuggling and speculative activity.

Meanwhile, analysts highlighted that supply demand forces are at play. “There are no buyers, only sellers in the market,” said an analyst.

A gap of less than 1.25% between rates in the inter-bank and open markets is one of the structural benchmarks set by the Washington-based lender for Pakistan.

However, despite the latest fall, the gap – called the premium by the IMF in its country report on Pakistan published after the Stand-By Arrangement’s approval by the Executive Board – remains higher than the prescribed level.

It is pertinent to mention that concerns over Pakistan’s rising imports as restrictions ease, a widening current account deficit, and falling foreign exchange reserves have renewed pressure on the rupee.


Comments are closed.

Fazeel Siddiqui (Overseas Pakistani) Sep 05, 2023 02:59pm
Company to bring down open market rate near Interbank rate to meet IMF premium condition of 1.25%, this is opposite of IMF sense that let interbank follow open market until natural market equilibrium is achieved.
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Tulukan Mairandi Sep 05, 2023 03:20pm
Bad news for the Indian trolls, our establishment and the Sharif mafia. But what's worse is it will eventually slump further to 400
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Aneesh Suhravardi Sep 05, 2023 03:56pm
@Tulukan Mairandi, As if Indians care much about how much the dollar is being sold for in our country..... as far as trolls are concerned it is we who taught them the art of trolling. Seems like now they have the opportunity to show how much they learned from us. :B
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jade buddha Sep 05, 2023 06:23pm
Do you think we are stupid. You drag the dollar all the way from 285 to 330 and show a strong recovery of 3 rupees?????
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Johnny Walker Sep 05, 2023 07:22pm
Speculators shorting after selling high. Lots of profit to be made.
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نعیم ںھائ Sep 05, 2023 08:01pm
ڈالر کو گرانا ہے تو پراپرٹی کو اٹھانا ہے۔
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Pakistani1 Sep 05, 2023 08:56pm
Improving 5 rupees from 325 is 1.5% which is by no means a strong recovery. BR should pay attention to what its headlines say viz a viz the actual news inorder not to mislead.
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M۔ Ahmed Sep 06, 2023 06:03am
A failed state and corrupt nation۔
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Builder Sep 06, 2023 12:16pm
@M۔ Ahmed, what's your contribution?
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