Open-market: The rupee largely stable against US dollar

The Pakistan rupee continued stable against the US dollar in the early hours of trading on Monday.

Currency dealers indicated that the rupee was quoted at 281.50 for selling and 278.50 for buying transactions conducted by customers.

The previous trading session, which concluded on Friday, saw the currency closing at 281.5 for selling and 278.5 for buying, as per data provided by the Exchange Companies Association of Pakistan (ECAP).

This ongoing appreciation of the rupee follows the State Bank of Pakistan (SBP) intensifying its efforts to restrain the surging US dollar and unveiling a set of “structural reforms” aimed at regulating the activities of Exchange Companies (ECs) last month.

In addition to the measures taken by the central bank, the interim government has implemented administrative actions to crack down on currency smuggling and hoarding. Consequently, nationwide raids have been conducted, resulting in the closure of numerous illegal currency exchanges and the confiscation of foreign currency worth millions.

Meanwhile, Tresmark, a financial research firm, issued a statement on Saturday suggesting that the Pakistani rupee is poised to breach the 280 mark against the US dollar, with potential resistance encountered around the 275 level.

Tresmark explained that the 275 level represents a target-based level, indicating that some consolidation at that point should be deemed acceptable to all stakeholders.

The firm also highlighted various factors contributing to the potential consolidation of the Pakistani rupee. It pointed out that the International Monetary Fund (IMF) seems to be moving towards approval, and the receipt of another tranche of funds would provide further support to the rupee.

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