KARACHI – The Pakistani Rupee remained relatively stable against the US Dollar in range-bound trading on Friday, concluding the day’s session at Rs138.85 to the dollar, compared to the previous day’s rate of Rs138.86 in the interbank foreign exchange market.
The interbank foreign exchange market opened with the exchange rate ranging between Rs138.80 and Rs138.85. Throughout the day, the market experienced fluctuations, with the highest rate recorded at Rs138.85 and the lowest at Rs138.83, eventually closing at Rs138.85.
In contrast to the interbank market, the local currency witnessed a slight depreciation in the open or cash-free market. The exchange rate for one US Dollar was noted at Rs138.80 to Rs139.20, compared to the previous day’s closing rate of Rs138.70 to Rs139.00.
The stability in the interbank market’s exchange rate indicates a cautious approach, as the local currency hovers around the Rs138.85 mark. This stability is largely attributed to the efforts of the State Bank of Pakistan (SBP) to manage the foreign exchange market and stabilize the Rupee.
The interbank market plays a crucial role in facilitating trade, foreign exchange transactions, and international financial activities. It is vital for businesses, financial institutions, and the government, and maintaining exchange rate stability is a priority for the central bank to ensure economic stability.
The minor depreciation of the Pakistani Rupee in the open market suggests that some fluctuations are still occurring in the cash-free market. The open market rates are influenced by various factors, including market supply and demand dynamics, speculative activities, and global economic conditions. The difference in exchange rates between the interbank and open market reflects the dynamics of these factors.
The exchange rate of the Pakistani Rupee against the US Dollar has been subject to fluctuations in recent years due to various economic challenges faced by the country. The SBP has taken measures to address these challenges and maintain exchange rate stability.
In conclusion, while the Pakistani Rupee held its ground against the US Dollar in the interbank market, some minor depreciation was observed in the open market. Exchange rate stability is a priority for the central bank, as it contributes to overall economic stability and confidence in the financial system. The dynamic nature of exchange rates in the open market underscores the need for vigilance and prudent economic policies to address challenges and manage fluctuations effectively.
