The Pakistani rupee improved further against the US dollar in the open-market on Tuesday as gap with the inter-bank market continued to stay narrow and within the prescribed limit set by the International Monetary Fund (IMF).
Currency dealers Business Recorder reached out to said the rupee was quoted at 292 for selling and 289 for buying purposes for customers.
At the end of trading on Tuesday, however, the rupee settled at 291 for selling and 288 for buying purposes in the open-market, according to data provided by the Exchange Companies Association of Pakistan (ECAP).
The rupee’s rate in the open market has become stronger, reducing the ‘premium’ to negligible values and meeting the benchmark set by the IMF.
In the inter-bank market, the currency closed at 289.80 after a 15th successive gain.
The rupee has been on an upward trajectory 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.
However, concerns remain over Pakistan’s foreign reserves, which are still not high enough, but the country’s caretaker administration is confident inflows from the World Bank, Asian Development Bank along with the IMF’s second tranche of the Stand-By Arrangement – expected after the review in November – will shore up reserves.
“The strengthening of the PKR against the US dollar is expected to play a mitigating role, offering some relief from inflationary pressures,” said Arif Habib Limited (AHL) in a report on Monday.