KARACHI, September 11, 2019 – The Pakistani rupee showed a modest recovery against the US dollar on Wednesday, gaining 4 paisas in the interbank market. This movement came following the reopening of currency markets after an extended break due to holidays, including the regular weekend and public holidays for Ashura-e-Muharram observed on September 9 and 10.
According to the State Bank of Pakistan, the rupee closed at Rs156.31 against the dollar, slightly up from Rs156.35 recorded on the last trading session on September 6. Despite some early morning pressure, the rupee managed to strengthen by the end of the session, supported by healthy inflows.
Currency market analysts attributed the rupee’s recovery to increased inflows of export proceeds and workers’ remittances, which provided much-needed support following the extended holidays. They noted that while the rupee faced initial volatility due to backlog demand and uncertainty in early trade, improved liquidity helped stabilize the exchange rate.
The interbank foreign exchange market opened in the range of Rs156.40 to Rs156.50. During the day, the rupee experienced a high of Rs156.60 and a low of Rs156.20 before settling at Rs156.31 by market close.
However, the open market painted a different picture, where the local currency witnessed a slight depreciation. The buying and selling of the dollar in the open market were recorded at Rs156.20 and Rs156.70 respectively, compared to the previous levels of Rs156.00 and Rs156.50 on September 6. Dealers in the retail market attributed the slide to a delayed adjustment due to the prolonged holidays, which created a temporary mismatch in supply and demand.
Experts believe that if inflows continue to improve in the coming days, the rupee may find further stability. However, external payments and any uptick in import activity post-holidays could exert fresh pressure on the currency. Market watchers are keeping a close eye on upcoming economic indicators and foreign exchange reserves data to assess the future direction of the rupee.