For the ninth day, the Pakistani rupee is beating the US dollar, boosting Pakistan’s economy. The rupee opened at 296 in interbank trading. By midday, the rupee had risen to 295 and gained Rs. 1 versus the US dollar.
The interbank rate fell to 296 between 1:30 and 2:30 PM in the afternoon. This consistency continued throughout the trading day.
Additionally, open market rates across currency counters were favorable. Today’s open market rates were 293-298, after beginning the week at 338-335. Since September 4, the open market rate has recovered by Rs. 43 versus the US dollar.
Trade ended with the Pakistani rupee up 0.37 percent at 296.85. This day’s Rs. 1.11 gain versus the US dollar is outstanding. The central bank’s market review decision to keep its benchmark interest rate at 22 percent boosted market confidence. This move boosted financial stability.
September saw the interbank-open market rate spread reduce by Rs. 43. From 337 last Monday, their rates fluctuated before settling at 293-298 today.
The central bank’s foreign currency reserves fell for the fourth week in a row. State Bank of Pakistan (SBP) foreign currency reserves were $7.639 billion on September 8. The central bank blamed debt repayments for this drop. Central bank reserves have declined by almost $1 billion since July 14, when they were $8.727 billion.
The country’s liquid foreign currency reserves, comprising net reserves held by non-SBP banks, fell $48 million to $13.079 billion last week.
Besides the US dollar, the Pakistani rupee gained against other major currencies in the interbank market today. Gains included 29 paisas against the Saudi Riyal (SAR), 29 against the UAE Dirham (AED), 40 against the Canadian Dollar (CAD), Rs. 3.18 against the British Pound (GBP), and Rs. 3.5 against the Euro.
In today’s interbank currency market, the rupee fell two paisas versus the Australian Dollar (AUD).