On Thursday, traders reported that foreign money was still available at counters despite the Pakistani rupee’s decline versus the US dollar. The open market price of the US dollar increased by Rs4 to a range of 301-304 from Tuesday’s range of 297-300.
In the interbank market, the PKR also declined against the USD and was trading above the 287 mark. But according to numerous currency traders contacted by Business Recorder, there is a plentiful supply of USD available.
According to experts, the recent discrepancy between demand and supply for US dollars is putting pressure on the local currency. “There is a surge in demand for dollars in the inter-bank,” Saad Khan, Head of Research at IGI Securities, told the source. After the central bank permitted banks to purchase dollars from the interbank market.
He claimed that “the rupee is declining in the inter-bank, which is reflected in the open-market.” To relieve pressure on the open currency market, the State Bank of Pakistan (SBP) this week permitted banks to purchase US dollars from interbank. For the settlement of card-based cross-border truncations with International Payment Schemes (IPS).
In the meantime, the expert on Thursday claimed that significant debt payments totaling $3–4 billion will be made in the next few days, putting the PKR under pressure. “The stock market is additionally tracking changes on the IMF front,” he continued.
In conclusion, the recent fluctuations in the Pakistani rupee against the US dollar have been a cause for concern among traders and experts.
Despite the decline of the rupee, foreign money is still readily available in the market. Which has contributed to the strengthening of the US dollar. This surge in demand for dollars, both in the interbank market and the open market. It has created pressure on the local currency.
Traders and analysts will continue to monitor the situation closely. As they navigate the impact of these factors on the exchange rate. Market participants will closely consider the availability of foreign currency and its influence on the US dollar’s strength in the upcoming days.
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