Dollar falls to Rs299 in open market, Rs301.16 in interbank

KARACHI: Pakistani rupee extended gains against the US dollar in the interbank and open markets by Rs1.79 (+0.59 percent) and Rs6 (+1.97 percent) respectively.
The State Bank of Pakistan (SBP) said in a tweet that the rupee opened at 302.95 against the dollar in the interbank market and closed at 301.16, showing an appreciation of Rs1.79 (+0.59 percent). The rupee appreciated against the US dollar in the interbank market by Rs2.52 last week, while it has depreciated by Rs15.17 during the current fiscal year 2023-24, and Rs73.73 in the current year.
Meanwhile in the open market, the rupee was quoted in the range of 295-299 against the dollar in the open market as compared to 301-305 a session earlier. The rupee has appreciated by Rs35 in the last five sessions.
The market experts termed the depreciation in the dollar’s value as a consequence of the crackdown. They said the measures have stopped the capital flight and there’s now an excess supply of dollars in the market. Moreover, reports of increased vigilance of the Afghan transit trade also contributed to the rupee’s rise, they added. They suggested the government continue with these measures in a sustainable manner to bring further improvement in the rupee’s value.
Last week, caretaker Prime Minister Anwaarul Haq Kakar said a crackdown to prevent cross-border smuggling was initiated across the country. Likewise, interim Interior Minister Sarfraz Bugti reiterated the caretaker government’s resolve on Sunday to take elements involved in smuggling and hoarding to task, including those accumulating dollars.
The interim government’s initiative is in line with Chief of Army Staff Gen Asim Munir’s recent assurance to the business community of fostering transparency in dollar exchange and interbank rates.
On the other hand, the SBP has also stepped up supervision of the foreign exchange market, ordering banks to set up separate entities to conduct forex transactions and extending a clampdown on hard-currency hoarders and smugglers. The central bank has also decided to introduce structural reforms in the exchange companies’ sector to provide “better services to the general public and bring transparency and competitiveness”. – TLTP