KARACHI: The rupee improved another 1.4% to settle at 287.74 against the US dollar in the inter-bank market during the previous week, extending its winning run to 17 successive sessions.
The phenomenal increase, which comes largely on the back of a crackdown against smuggling and controls on the Exchange Companies (ECs) sector, also meant the rupee was the best-performing currency in the world in September. It closed the month with a gain of 6.2%.
The performance is in stark contrast to overall depreciation in the first eight months of 2023, which stood at nearly 26%.
Similarly, its rate in the open market also improved during the previous week, helping it close at 285 and 288 for buying and selling purposes, respectively, according to data provided by the Exchange Companies Association of Pakistan (ECAP).
The increase, criticised by some as unsustainable since it comes on the back of administrative measures, is also seen as a positive as it curbs ‘speculation’ in the currency market. It also means the gap between the inter-bank and open markets has narrowed to negligible levels, meeting the structural benchmark set by the International Monetary Fund (IMF).
The development comes at an apt time for Pakistan that is set to enter the next review of its Stand-By Arrangement with the IMF.
Open-market rates
In the open market, the PKR gained 5.50 rupees for both buying and selling against USD, closing at 285.00 and 288.00, respectively.
Against Euro, the PKR gained 9.00 rupees for both buying and selling, closing at 303.00 and 306.00, respectively.
Against UAE Dirham, the PKR gained 3.00 rupees for both buying and selling, closing at 79.00 and 79.80, respectively.
Against Saudi Riyal, the PKR gained 2.50 rupees for both buying and selling, closing at 75.50 and 76.20, respectively.
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THE RUPEE
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Weekly inter-bank market rates for dollar
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Bid Close Rs. 287.70
Offer Close Rs. 287.90
Bid Open Rs. 291.75
Offer Open Rs. 291.95
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Weekly open-market rates for dollar
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Bid Close Rs. 285.00
Offer Close Rs. 288.00
Bid Open Rs. 290.50
Offer Open Rs. 293.50
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Copyright Business Recorder, 2023