The Pakistani rupee maintained its positive trajectory against the US dollar, recording a 0.37% increase during the early hours of inter-bank trading on Wednesday.
By 10:10 am, the rupee was holding steady at 293.80, marking a notable Rs 1.10 uptick from the previous day’s rates in the inter-bank market. This follows a 0.36% appreciation recorded on Tuesday when the rupee settled at 294.90.
Conversely, the rupee displayed a slight dip against the US dollar in the open market during the opening hours of Wednesday’s trading session.
According to reports from currency dealers, the rupee was quoted at 296.9 for selling and 294 for buying purposes for customers in the open market, reflecting a decrease of nearly Re1 in comparison to Tuesday’s rates. At the close of trading on Tuesday, data from the Exchange Companies Association of Pakistan (ECAP) indicated that the rupee stood at 296 for selling and 293 for buying purposes.
The rates in both the inter-bank and open markets are now closely aligned, reducing the premium, a structural benchmark of the International Monetary Fund (IMF) program.
This recent resurgence in the rupee’s value marks a remarkable turnaround from its record low of 307.1 in the inter-bank market. Credit for this resurgence is attributed to the structural reforms implemented by the State Bank of Pakistan (SBP) in the Exchange Companies’ (ECs) sector.
Additionally, reports suggest that authorities have initiated a crackdown on smuggling, which has provided crucial support to the currency markets.