Rupee stronger against $ in interbank and open markets

KARACHI: The Pakistani rupee appreciated against the US dollar by 4 paisas (+0.01 percent) in the interbank market and Rs3 (+ 1 percent) in the open market on Tuesday.
The State Bank of Pakistan (SBP) said in a tweet that the rupee opened at 287.26 against the dollar in the interbank market and closed at 287.22. During the current fiscal year 2022-23, Pakistani rupee has lost Rs81.33 against the US dollar in the interbank market, while it plummeted by Rs60.89 against the greenback in the current year.
Similarly, the local unit appreciated by Rs3 (+1 percent) against the greenback in the open market. The rupee was quoted in the range of Rs290-293 against the US dollar in the open-market as compared to a range of Rs293-296 a session earlier.
According to market experts, the rupee made marginal gains due to a reduced demand for the dollar during the day. They said the rupee took a breather with little to no traffic at currency counters, adding the demand for the US dollar has softened but open channels remain as high as they were a day earlier.
They said that the rupee is very undervalued these days. The situation since last year has made the currency fall beyond its means but factors like inflation and external pressures seem to have little to no effect on it. Domestic factors like trade, or policy-related discussions on the IMF deadlock are some of the few identified metrics which, against financial norms, are dictating exchange rate trends, they added.
The local currency has remained stable over the past weeks after being traded up to Rs316 as the paucity of foreign reserves and the resultant hoarding/ blacking marketing created a huge difference between the official exchange rate and the open market. At one point, the dollar even in the interbank had surged to Rs298.93 on May 12. However, the difference has now been narrowed down. – TLTP