In a surprising twist, the Pakistani rupee demonstrated a strong comeback against the US dollar, resulting in a significant reduction of the gap on Wednesday, reaching Rs13.
According to the Exchange Companies Association of Pakistan (ECAP), the currency displayed a positive trend in the open market for the second consecutive working day. It regained 1% of its value, equivalent to Rs3, and settled at Rs300 against the greenback.
However, the interbank market told a different story, as the rupee faced its fourth consecutive day of depreciation. It declined by 0.11% or Rs0.32, hitting a two-week low of Rs286.88/$, as reported by the central bank’s data.
Just last week, the rupee-dollar exchange rate gap had reached a record Rs27, mainly due to the significant depreciation of the rupee in the open market.
For the past several weeks, the interbank market remained relatively stable, hovering around Rs285-286/$, except for a few instances. This discrepancy raised concerns, leading the IMF to question the government’s control over the currency market. In response, the central bank redirected a significant portion of open market business to the interbank market.
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