The Pakistani rupee registered a gain against the US dollar in the open market on Monday, an appreciation that comes in tandem with the currency’s increase in the inter-bank.
Currency dealers Business Recorder reached out to said the rupee was quoted at 281.50 for selling and 278.50 for buying purposes for customers earlier in the session.
However, at the end of trading on Monday, the currency closed at 280.5 for selling and 277.5 for buying, according to data provided by the Exchange Companies Association of Pakistan (ECAP). The rate is once again below the one in the inter-bank market.
The ongoing appreciation comes after the State Bank of Pakistan (SBP) ramped up efforts to clip the wings of the high-flying dollar and announced a list of “structural reforms” last month, targeting the Exchange Companies (ECs).
In the inter-bank, the rupee saw a 23rd successive session of appreciation, closing at 281.65 against the greenback.
Apart from the central bank measures, the caretaker setup also announced taking administrative steps to tighten the screws around smuggling and hoarding of currency and as a result, countrywide raids were reported with scores of illegal currency exchanges being shut down and foreign currency worth millions confiscated.
Meanwhile, Tresmark, a financial research firm, on Saturday said the Pakistani rupee looked set to breach the 280 level against the US dollar and will only face some resistance near the 275 level.
“The 275 level is simply a ‘goal based’ level - that some consolidation at that level should be acceptable to all,” it said.
Tresmark highlighted factors which will also cause the Pakistani rupee to consolidate. It said that the International Monetary Fund (IMF) appears to be heading towards giving a go-ahead, and another tranche will give wings to rupee.
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