The rupee continued its upward trajectory on Friday, rising against the US dollar in the interbank and open market. The rupee rose by Rs1.99 in the interbank market to close at Rs302.96 from the preceding close Rs304.94, according to the central bank.
Meanwhile, the dollar also fell in the open market. According to the Forex Association of Pakistan, the dollar was being traded at Rs301 in the open market at noon.
Arif Habib Limited said the rupee had gained Rs4.2 or 1.4 per cent against the dollar in the last three consecutive trading sessions. The development comes two days after the central bank decided to introduce structural reforms in the exchange companies’ sector in order to provide “better services to the general public and bring transparency and competitiveness”. Khurram Schehzad, the chief executive of financial consultancy firm Alpha Beta Core, attributed the strengthening of the rupee to the assurances given by the army chief to the business community in recent days.
Schehzad also cited the increase in the supply of dollars, saying people in the open market had started selling dollars in the interbank.
According to a survey conducted by Topline Research, 38 per cent of the participants anticipated PKR/USD parity to range between Rs320-340 by June 2024. Around 25pc of the participants in the survey expected the parity between the currencies to be around Rs340-360 while 21pc expected it to be around Rs300-320. While 12pc of the participants expected it to be below Rs300, 5pc expected it to be above Rs360, it added.
“We (Topline Securities) also expect PKR/USD in [the] interbank market to be in [the] range of Rs320-340 by June 2024,” Topline Securities CEO Mohammed Sohail said. Meanwhile, the caretaker government on Friday announced that it directed the Federal Investigation Agency (FIA) to exercise its authority and take necessary measures to curb the smuggling of sugar and US dollars in the country. In a meeting chaired by Federal Interior Minister Senator Sarfaraz Ahmed Bugti, the government has empowered the FIA to exercise its authority to tackle the prevailing smuggling issue.
A letter pertaining to FIA’s newly granted authority has been issued in this regard. The FIA will tackle activities pertaining to the smuggling of sugar, fertilisers, petroleum products, US dollars and other foreign currencies. The investigative agency will be able to exercise its authority and take necessary measures at all entry and exit points of foreign currencies.
