Islamabad, October 20, 2023 (PAKONOMY): The Pakistani rupee had an interesting and stable week in its exchange rate against the US Dollar. It all started on Monday when the rupee opened trading at 279 in the interbank market. People weren’t sure what to expect, but as the week went on, the rupee showed some strength.
By Thursday night (around 11:30 PM), it had surprised everyone by making gains, reaching the 275 level against the US Dollar. This marked a significant increase of approximately Rs. 3. Traders and market watchers were pleasantly surprised by this change.
Throughout the day, the interbank rates experienced a bit of up and down. At one point (between 1:30 PM and 2:30 PM), the rates even dropped to the 278 level. Despite these fluctuations, the rupee managed to stay in the 275-279 range.
The positivity continued, and by the end of the trading day, the Pakistani rupee had appreciated by 0.00 percent, closing at 278.79. It had gained two paisas against the US Dollar, reinforcing the positive performance throughout the week.
Although this upward trend didn’t dramatically impact the overall recovery, traders did note that the forex market remained stable amid some political developments within the country. The gap between interbank and open market rates had also significantly reduced by Rs. 61 since September 4, 2023. Rates showed some fluctuations, dipping as low as 275 and then spiking to 279 on this day.
It’s worth mentioning that the Pakistani rupee has seen quite a bit of depreciation since January 2023, and even more so since April 2022. However, recent exchange rate movements indicated a modest recovery, with the PKR gaining two paisas against the US Dollar.
In a significant development, Pakistan’s Real Effective Exchange Rate (REER) Index appreciated to 91.7 in September 2023 compared to 90.0 in August 2023. This positive shift, according to data released by the State Bank of Pakistan (SBP), indicates an improvement in Pakistan’s overall economic stability.
As the rupee closes the week with signs of improvement, market participants will keep a close eye on the exchange rate movements and economic developments that continue to shape Pakistan’s financial landscape.