The Pakistani rupee demonstrated stability and even made some modest gains against the US Dollar in recent trading. It opened at 279 in the interbank market and, at 11:30 PM, was trading at a bullish 275 against the greenback, marking an increase of approximately Rs. 3. However, it later settled at the 278 level, remaining fairly steady throughout the day. Open market rates ranged from 275 to 279.
By the end of the day, the PKR had appreciated by 0.00 percent, closing at 278.79 after gaining two paisas against the dollar. This positive trend contributed to the rupee’s overall performance for the week.
Notably, the gap between interbank and open market rates has decreased by Rs. 61 since September 4, reflecting greater stability in the currency exchange market. While the rupee has experienced some fluctuations, it remains notably weaker compared to previous years, having declined by nearly Rs. 61 since January 2023 and more than Rs. 108 since April 2022 against the US Dollar.
In a significant development, Pakistan’s Real Effective Exchange Rate (REER) Index improved, reaching 91.7 in September 2023, up from 90.0 in August 2023, according to data from the State Bank of Pakistan. These recent currency movements and the strengthening of the REER index indicate some positive developments in Pakistan’s foreign exchange market.