The Pakistani rupee displayed significant strength against the US dollar in the open market, trading at 325 during Tuesday’s session, marking a reduction in the gap between the open-market and inter-bank rates.
Dealers, reported that the rupee was being offered at 325 for selling and 322 for buying, which represented a decrease of Rs5 compared to the previous day’s levels of 330 and 327.
— SBP (@StateBank_Pak) September 5, 2023
The Exchange Companies Association of Pakistan (ECAP) also provided rates of Rs325 and Rs322 during trading but noted that by the end of the session, the rates had shifted to Rs323 for selling and Rs320 for buying.
In contrast, in the inter-bank market, the rupee continued to face pressure and reached a record low of 307.1 against the US dollar.
It’s important to highlight that concerns about Pakistan’s increasing imports as restrictions are lifted, a widening current account deficit, and declining foreign exchange reserves continue to put pressure on the value of the rupee.