Monday, October 2, 2023

Massive Unexpected Drop in US Dollar Value Against Pakistani Rupee in Open Market, Today’s Rate Here

The Pakistani rupee has shown a significant resurgence against the US dollar in the open market, where it was trading at a rate of 325 on Tuesday. This marks a notable reduction in the gap between open-market and inter-bank rates.

The Exchange Companies Association of Pakistan (ECAP) also quoted rates in the range of Rs325 and Rs322 during trading. In contrast, the inter-bank market saw the rupee continue to face pressure, remaining at the 306 level in its exchange rate against the US dollar.

This positive turn in the rupee’s fortunes has been attributed, in part, to a recent meeting between Chief of Army Staff (COAS) Asim Munir and members of the business community on a Sunday. During this crucial meeting, the army chief engaged in discussions regarding the government’s economic strategies and its commitment to curbing issues like smuggling and speculative trading activities.

Nonetheless, analysts emphasize that market dynamics driven by supply and demand are also playing a pivotal role in this currency recovery. As one analyst aptly noted, “There are currently more sellers than buyers in the market,” underscoring the intricate forces at play in the currency exchange landscape.

Importantly, concerns continue to loom over Pakistan’s escalating imports as trade restrictions ease, a widening current account deficit, and declining foreign exchange reserves. These factors collectively exert ongoing pressure on the stability of the Pakistani rupee, a situation that requires vigilant attention from economic stakeholders to maintain fiscal equilibrium in the country.

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