KARACHI: The Pakistani Rupee concluded stronger against the US dollar on Thursday, defying expectations amid heightened demand for import and corporate payments.
The rupee settled at Rs138.24 to the dollar in the interbank foreign exchange market, slightly firmer than the previous day’s closing rate of Rs138.23.
The day commenced in the interbank foreign exchange market with a trading range of Rs138.24 to Rs138.28. Despite fluctuations throughout the day, the market recorded a high of Rs138.27 and a low of Rs138.23 before ultimately closing at Rs138.24. This unexpected resilience of the Pakistani Rupee has sparked interest among market observers and economists, given the prevailing economic challenges faced by the country.
Contrary to the interbank market, the exchange rate in the open market remained stable, providing a contrast to the fluctuations observed in the interbank arena. In the cash-free market, the buying and selling of the dollar were recorded at Rs137.80 and Rs138.30, respectively.
Over the past year, Pakistan has grappled with a challenging fiscal situation, as highlighted by the finance ministry. Revaluation losses resulting from the appreciation of international currencies against the US Dollar, coupled with the depreciation of the Pakistani Rupee against the same, have collectively contributed to an increase in the total public debt by approximately Rs 1.2 trillion.
The unexpected strength of the Pakistani Rupee in the interbank market has raised questions about the factors influencing its value. While demand for import and corporate payments usually exerts downward pressure on the currency, the resilience seen in this instance suggests potential mitigating factors or market dynamics at play.
Economists and financial analysts are closely monitoring these developments to gain insights into the underlying factors influencing the exchange rate. The unexpected strength of the rupee may prompt discussions about the effectiveness of monetary policies, market interventions, and the broader economic resilience of Pakistan in the face of global economic uncertainties.
The State Bank of Pakistan’s role in managing currency stability and fostering a conducive economic environment is crucial, and its actions will be closely scrutinized in response to these recent market dynamics. As Pakistan navigates its economic challenges, the performance of the Pakistani Rupee in the foreign exchange market will continue to be a key indicator of the country’s economic health and its ability to weather financial pressures.
