KARACHI: According to Forex dealers, the US dollar (USD) falls below the interbank rate in the open market on Monday. The dollar has been trading at 298 rupees on the open market.
The Pakistani rupee is becoming stronger compared to the US dollar in both the open market and the official interbank market. In the open market, it has even exceeded the interbank rate, which is quite unusual.
In the interbank market, the rupee reached a two-week high at Rs301.16 against the US dollar, marking a 0.59% increase in just one day. At the same time, in the open market, the currency rose by 1.33% to Rs300 per dollar.
This is the fourth consecutive day of the rupee getting stronger in the interbank market, with a total gain of nearly 2% in four days. Just a few days ago, it hit an all-time low of Rs307.10 per dollar.
Experts believe this recovery is due to exporters selling their US dollars, which increases the supply of dollars. They expect the currency to stabilize around Rs300 per dollar in the near future.
There’s also talk in the market that the rupee might strengthen even more, possibly reaching a range of Rs250-270 per dollar. This could happen because Saudi Arabia and the UAE are expected to make significant investments in Pakistan under the Special Investment Facilitation Council (SIFC) platform.
Additionally, measures to prevent currency smuggling have helped stop the rupee’s decline, and it has started to recover some of its value against the US dollar. Previously, it had dropped by 6%, which is about Rs18.50, in the first three weeks of the caretaker government’s tenure, hitting a record low of Rs307.10 per dollar.
In the open market, the rupee has regained 9.33%, or Rs28, against the US dollar over the past five working days, reaching $300 per dollar.