The US dollar has surged to a new high against the Pakistani rupee in the open market, reaching a trading level of 331.
Dealers reported that the rupee was being quoted at 331 for selling and 328 for buying in the open market, representing a Rs5 increase from Thursday’s rates of 326 for selling and 323 for buying.
Meanwhile, the Exchange Companies Association of Pakistan (ECAP) quoted rates of Rs326 for selling and Rs323 for buying during Friday’s trading session.
Conversely, the rupee had previously concluded trading at a historic low of 305.54 against the US dollar in the interbank market.
The rupee has faced increased pressure against the US dollar since the government removed import restrictions, a key requirement of the International Monetary Fund (IMF) program.
Furthermore, analysts have pointed out that the IMF’s condition to maintain a currency gap of approximately 1.25% between the interbank and open markets is contributing to the rising rates in the open market.
Experts have noted that speculators in the market are taking advantage of this condition. The IMF’s country report on Pakistan, published after the approval of the Stand-By Arrangement by the Executive Board, highlights the widening gap between rates in the interbank and open markets, referred to as the “premium” by the IMF.