US Dollar Missing from Open Market After Pakistani Rupee’s Rise.
The Pakistani rupee began the week on a positive note against the US Dollar today, opening trading at 280 in the interbank market. Despite stability against the greenback, it faced constraints in generating significant movement due to a shortage in the open market. Persistent economic and political uncertainties, combined with traders’ low confidence in the prevailing business climate, led to a depletion of USD supply during today’s trading session.
Throughout the day, the interbank rate remained mostly steady at 280 before closing at the 279 level. Open market rates across various currency exchanges ranged between 279 and 280 today. The PKR showed a modest appreciation of 0.06 percent, gaining 16 paisas to conclude at 279.2 against the dollar by day’s end.
On a fiscal year-to-date basis, the rupee has appreciated by 2.42 percent.
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Overall, since January 2023, the rupee has depreciated by nearly Rs. 52. From April 2022, it has experienced a decline of Rs. 96.3 against the greenback. Based on today’s exchange rate movements, the PKR gained 16 paisas. However, the scarcity of US dollars, even at rates around Rs. 300-305 in the open market, may change in the near future due to limited availability and government preferences to avoid shortages, as per a dealer quoted by ProPakistani on Monday. The volatility in rates and scarcity stem from the ongoing uncertainty in the country, the dealer added.
In today’s interbank currency market, the PKR saw gains against most major currencies. It appreciated by four paisas against the Saudi Riyal (SAR) and the UAE Dirham (AED), eight paisas against the British Pound (GBP), 23 paisas against the Euro (EUR), and 78 paisas against the Canadian Dollar (CAD). However, it experienced a loss of 50 paisas against the Australian Dollar (AUD).
