KARACHI – The US dollar experienced a decline of 35 paisas against the Pakistani Rupee in the Interbank Foreign Exchange Market on Thursday.
This shift is attributed to a combination of foreign inflows and a decrease in the demand for import payments.
Closing at Rs138.23 to the dollar, the Rupee demonstrated its strengthened position compared to the previous day’s closing rate of Rs138.58 in the interbank foreign exchange market. The market’s initial range was set between Rs138.52 and Rs138.56, and throughout the day, it reached a high of Rs138.52 and a low of Rs138.00, ultimately settling at Rs138.23.
Analysts suggest that the favorable movement in the exchange rate is primarily influenced by a decrease in demand for US dollars due to lower import requirements. The government’s efforts to discourage the import of non-essential items and luxury goods are believed to have contributed to the reduction in demand, providing support to the Pakistani Rupee.
The local currency has demonstrated resilience throughout the week, gaining 55 paisas against the US dollar in the interbank foreign exchange market. This positive trend is indicative of a strengthening Rupee, with market participants closely monitoring the factors contributing to this momentum.
The open market also mirrored the positive sentiment observed in the interbank market, with the local unit gaining an additional 20 paisas. The buying and selling of the dollar in the cash-free market recorded at Rs138.00/Rs138.50, compared to the previous day’s close of Rs138.20/Rs138.70.
While the exact nature of foreign inflows contributing to the Rupee’s strength was not specified, experts suggest that these could be a result of investments, remittances, or financial assistance from international sources. The inflow of foreign funds, coupled with the government’s measures to control imports, has created a conducive environment for the Pakistani Rupee to gain ground against the US dollar.
The fluctuating exchange rates highlight the sensitivity of the currency market to economic variables, both domestic and international. As the Rupee continues its upward trajectory, market participants are keenly observing any potential developments that may impact the currency’s stability.
The weakening of the US dollar against the Pakistani Rupee in the Interbank Foreign Exchange Market is attributed to a confluence of factors, including foreign inflows and a decrease in demand for import payments. The positive trend observed throughout the week reflects the effectiveness of government measures in managing the currency’s value and fostering economic stability. Market participants remain vigilant as they monitor the evolving dynamics that shape the currency market.
