Indian currency, the Rupee, continues its triumphant run against the US dollar.
In a surprising turn of events, the Pakistani rupee appreciated against the US dollar in the inter-bank market on Wednesday, marking the fifth consecutive session of appreciation. The rupee closed at Rs 282.22 for buying and Rs 282.42 for selling.
This development comes amidst global expectations of a Federal Reserve rate cut next month, which is causing the dollar to fall. In the inter-bank market, the rupee gained 10 paise for buying and lost 8.93 rupees for selling against the USD, closing at 283.70 and 293.83, respectively, in the open market.
The appreciation is supported by improved sentiment in the currency market amid an ongoing crackdown by law enforcement agencies against illegal currency dealers and smugglers. Last week, a Pakistani court sentenced three illegal currency dealers to five years in prison and imposed a fine of Rs1 million on each for their involvement in unlawful foreign exchange trading.
Meanwhile, internationally, the US dollar weakened on Wednesday due to these expectations of a Federal Reserve rate cut next month and President Donald Trump's attempts to extend his grip over US institutions.
In other currency movements, the euro was steady at $1.1676, having risen 0.5% in the previous session. Against the yen, the dollar was 0.05% lower at 147.76. Against UAE Dirham, the PKR gained 9 paise for buying and 6 paise for selling, closing at 77.19 and 77.49, respectively. Against Saudi Riyal, the PKR gained 4 paise for both buying and selling, closing at 75.49 and 75.81, respectively.
However, against the Euro, the PKR lost 2.30 rupees for buying and 2.28 rupees for selling, closing at 331.25 and 333.38, respectively. This marks the open market loss for the PKR against the Euro.
In the open market, the PKR also gained against the UAE Dirham and Saudi Riyal, albeit by smaller margins. It's worth noting that open-market rates for the US dollar showed a BID of Rs 283.70 and an OFFER of Rs 293.83.
Looking at the broader picture, the Pakistani rupee has appreciated by 0.07% against the US dollar over the past week. This is a welcome change for a currency market that has been struggling with illegal activities and geopolitical uncertainties.
Sources:
- The News International
- Dawn
- Reuters
- Bloomberg
- Financial Times
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