RECORDER REPORT
KARACHI: The rupee continued on its merry recovery path against the US dollar, appreciating to close near the 226 level in the inter-bank market on Thursday.
As per the State Bank of Pakistan (SBP), the rupee closed at 226.15, an appreciation of Rs2.65 or 1.17% against the greenback.
In the last two sessions, the currency has appreciated Rs12.23 or 5.4% against the US dollar.
On Wednesday, the rupee witnessed a massive recovery, registering a day-on-day increase of Rs9.58 to close at 228.8.
“Due to demand contraction, the supply of dollars has improved, lifting market sentiment, and continued to positively affect the rupee,” said Trust Securities and Brokerage Limited (TSBL) in a note on Thursday.
“(However) political uncertainty and sentiment could hit the currency negatively going forward."
Meanwhile, oil prices, a key determinant of currency parity, have also retreated recently.
“WTI crude futures trading at $91/barrel on weak US factory data, global recession concerns, and supply disruptions are a sigh of relief for Pakistani markets on the external front,” said TSBL.
Moreover, recent action taken by the central bank against Exchange Companies (ECs) and banks have also helped improve the exchange rate in the inter-bank and open currency markets, analysts said.
The SBP on Wednesday said that it has increased the monitoring of foreign exchange operations of ECs and banks in view of recent volatility in the exchange rate and the difference between the inter-bank rate and the rate offered by ECs and banks to their customers.
In a statement, it said that after inspections of a number of exchange companies and banks since Monday (August 1, 2022), the SBP suspended the operations of four branches of two ECs (Galaxy Exchange Co and Al-Hameed International Money Exchange Co) for violation of SBP regulations.
Meanwhile, the Pakistan Business Council (PBC) appreciated the improvement in the currency and a decline in imports.
“Whilst any improvement in the economy is welcome, deep-rooted fundamental flaws remain and need a reform programme to correct,” the PBC said.
It added that import curbs are short-term solutions. “‘Make-in-Pakistan’ is more sustainable,” it added.
Open-market movement
In the open market, the PKR gained 3 rupees for both buying and selling against USD, closing at 224 and 226, respectively.
Against Euro, the PKR gained 2 rupees for both buying and selling, closing at 224 and 226 respectively.
Against UAE Dirham, the PKR gained one rupee for both buying and selling, closing at 60.50 and 61, respectively.
Against Saudi Riyal, the PKR gained 1.80 rupees for both buying and selling, closing at 58.20 and 58.70, respectively.
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Open Bid Rs 224.00
Open Offer Rs 226.00
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Interbank Closing Rates: Interbank Closing Rates For Dollar on Thursday
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Open Bid Rs 225.00
Open Offer Rs 227.00
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RUPEE IN LAHORE: The Pak rupee continued its sharp recovery for the fourth straight day against the US dollar in the open currency market on Thursday.
According to the local currency dealers, the dollar remained under selling pressure throughout the trading session and significantly declined for buying and selling at Rs 223.00 and Rs 225.00 against the overnight close of Rs 228.00 and Rs 230.00, respectively.
In addition, the rupee also followed suit in relation to the pound sterling that was bought and sold at Rs 265.00 and Rs 267.50 against Wednesday’s close of Rs 272.00 and Rs 274.00, respectively, they added.
Copyright Business Recorder, 2022
