Open-market: rupee gains further ground against US dollar

The Pakistani rupee improved against the US dollar, closing between 293.5 and 290.5 in the open market on Friday.

Currency dealers Business Recorder reached out to during the trading session said the rupee was quoted at 295 for selling and 292 for buying purposes for customers in the open market.

However, by the end of trading on Friday, the rupee was quoted at 293.5 for selling and 290.5 for buying purposes, according to data provided by the Exchange Companies Association of Pakistan (ECAP). On Thursday, the rupee had closed at 296 and 293, respectively.

Rates in the inter-bank and open markets are now firmly close to each other, reducing the premium that is one of the structural benchmarks of the International Monetary Fund (IMF) programme.

In the inter-bank market, the rupee gained for the 13th successive session against the US dollar, settling at 291.76.

The rupee has been on a merry run in recent weeks, which comes on the back of a countrywide crackdown against illegal exchanges and smugglers of currencies by law enforcement agencies.

Apart from the government’s administrative measures, the State Bank of Pakistan also announced structural reforms, directing commercial banks to establish their own ECs as fully-owned subsidiaries.

So far, four banks have announced establishing the ECs.