A trader counts US dollar banknotes at a currency exchange booth in Peshawar, September 15, 2021. — Reuters/File
The Pakistani rupee continued to appreciate against the US dollar at the open market on Wednesday, rising by Rs 4 against the greenback.
According to the Forex Association of Pakistan, the rupee gained Rs4 against the dollar and was trading at Rs313 at 12:15 p.m. The dollar was said to be selling at 313 on the open market, while it was being bought at 310.
However, at the interbank market, the local currency gained 12 paise against the dollar to settle at 306.98 from yesterday's close of 307.10.
Malik Bos tan, chairman of the Association of Stock Exchange Companies of Pakistan, said that the government and relevant authorities have taken strict steps to control the "black market", which has led to a narrowing of the gap between the open market and the interbank market.
Bos tan expressed hope that interbank and open market rates will soon return to normal.
Meanwhile, the Association of Stock Exchanges of Pakistan Secretary General Zafar Parachi said "Today was a really good day for Pakistan's economy" as the gap between the interbank and open exchange rates narrowed.
He praised Chief of General Staff General Asmi Munir for "his role" in the positive development.
"The army chief met with businessmen in various cities... and assured them that steps would be taken to improve the situation."
“He said talks on foreign direct investment are underway and commitments have been made for investments of $20-25 billion which will be made soon.
Parachi also linked the rupee's appreciation to the launch of anti-smuggling and crackdown on illegal companies, explaining that this has reduced the number of gray market buyers and the gap between interbank and open market rates.
Noting that the dollar is still on the rise in the open market, he urged banks to "act responsibly" and advised people not to buy dollars unnecessarily.
Kamal Mansoor, head of strategy at financial services platform Trustmark, said: “Verbal interventions on multiple fronts temporarily stopped the [rupee] rally.
Financial institutions and exchange companies were called to caution and large corporates were presented with rosy pictures, traders were determined to trade above 307. Because of this, we have seen the rupee bound to a range this week and we may see some consolidation as well.”
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