The Pakistani rupee strengthened further against the US dollar in the open-market on Wednesday 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 290 for selling and 287 for buying purposes for customers.
At the end of trading on Wednesday, the rupee settled at the same rates, 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 finished at 288.75.
The rupee has been on an upward trajectory in recent weeks, which is attributed to administrative measures taken by law enforcement agencies against illegal exchanges and smugglers of currencies.
Moreover, apart from the government’s actions, the State Bank of Pakistan also announced structural reforms, targeting the Exchange Companies. The measures include directing commercial banks to establish their own ECs as fully-owned subsidiaries.
“Exporters are coming in droves to sell their proceeds, as exporters were expecting further depreciation of the rupee, which is not the case anymore,” a market analyst told Business Recorder.
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.