US dollar declines to Rs240 against rupee in open market

KARACHI: The US dollar after days of hike in open market and interbank saw a decline against rupee on Monday amid government and SBP’s assurance that the country will have enough funds for FY2022-23 after receiving IMF tranches, ARY NEWS reported.

According to forex dealers, the US dollar shed Rs0.53 in the interbank and traded at Rs238.84 as the banks sold the greenback at Rs239.50. In open market, after touching the Rs250 mark, the US dollar declined to Rs240.

The rupee’s freefall continued on early Friday against the US dollar in the interbank, however, it reversed the losses in the second half amid reports that COAS Qamar Bajwa has approached US for playing a role in immediate release of a US$1.2 billion tranche.

According to the State Bank of

Pakistan (SBP), the rupee rose by Rs0.57 in the interbank and traded at Rs239.37. “The banks are selling US dollar at Rs242 while in open market, it being exchanged between Rs242 and Rs244,” the forex dealers said.

Previously, the State Bank of Pakistan (SBP) attributed the 11-rupee change in the exchange rate in just two days to the “market-determined exchange rate system” under which the current account position, news stories, and domestic uncertainty contribute to the daily currency fluctuations.

Read More: PAKISTAN’S FOREIGN RESERVES FALL BY $826.9 MILLION: SBP

In an apparent attempt to downplay the depreciation, the SBP said a “better measure” of the rupee’s strength is the real effective exchange rate, which takes into account the currencies in which Pakistan trades in inflation-adjusted terms.