KARACHI; The rupee appreciated 0.83% against the US dollar in the inter-bank market during the previous week, but there was much more to the story as its gap with the open market reduced massively while a reported crackdown on smuggling and speculation saw the currency reverse fortune after it hit a record low on Tuesday.
The rupee depreciated on the opening two days to hit a record low of 307.1 with the gap between the inter-bank and open markets going beyond 7% at one point. However, the move by the State Bank of Pakistan (SBP) to strengthen controls on Exchange Companies, and reports of the army chief’s intervention and deployment of law-enforcement personnel at currency dealer outlets saw the currency regain ground.
The developments also meant the rupee gained in value in the open market with the gap reducing to a negligible value by the end of the week. Data released by the Exchange Companies Association of Pakistan suggested the gap was now well within the limit prescribed by the International Monetary Fund (IMF) in its country report released after the Executive Board approval.
The rupee is likely to see a more stable time in the coming days, but eyes will be on the current account and remittance data that will be released later this month.
Open-market rates
In the open market, the PKR gained 24.00 rupees for both buying and selling against USD, closing at 301.00 and 304.00, respectively.
Against Euro, the PKR gained 28.00 rupees for buying and 28.50 rupees for selling, closing at 322.00 and 325.00, respectively.
Against UAE Dirham, the PKR gained 5.20 rupees for both buying and selling, closing at 84.50 and 85.30, respectively.
Against Saudi Riyal, the PKR gained 7.20 rupees for both buying and selling, closing at 80.00 and 80.80, respectively.
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THE RUPEE
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Weekly inter-bank market rates for dollar
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Bid Close Rs. 302.90
Offer Close Rs. 303.10
Bid Open Rs. 305.45
Offer Open Rs. 305.65
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Weekly open-market rates for dollar
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Bid Close Rs. 301.00
Offer Close Rs. 304.00
Bid Open Rs. 325.00
Offer Open Rs. 328.00
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Copyright Business Recorder, 2023