Dollar continues to lose ground against rupee in interbank markets

Rupee strengthens by Rs2.11 against the greenback
Aug 05, 2022

The rupee continued to make strides against the US dollar on Friday, gaining Rs2.11 at the close of intraday trading in the interbank market.

According to data released by the State Bank of Pakistan (SBP), the rupee appreciated by around 0.94% on the last day of the trading week.

A US dollar was traded for around Rs224.04 in the interbank at close. By comparison, the US dollar was trading at Rs226.15 on Thursday.

During intraday trading, the US dollar saw its value against the rupee drop to Rs224 on Friday morning.

Earlier, at the end of the trading day in the interbank on Thursday, the dollar had closed at Rs226.15, down by Rs2.65 from Rs228.80 the previous day.

In the open market, the dollar was trading for a low of Rs222.

Wednesday saw a record drop in the value of the dollar when it depreciated by Rs9.58 in the inter-bank market. In the open market, the dollar had depreciated by Rs13.50.

During a conversation regarding the value of rupee gaining against the US dollar, Zafar Paracha of Paracha Exchange told SAMAA TV that the dollar will continue to see its value erode over the next few days.

He predicted that it could fall to as low as Rs200 by the end of August.

Meanwhile, the State Bank of Pakistan (SBP) has also tightened the foreign exchange operations of exchange companies and the banks.

The central bank suspended the operations of 4 branches of 2 exchange companies for violating the regulations while a large difference in the buying and selling price of the dollar was also noticed.

Malik Bostan, chairman of Forex Association of Pakistan, told SAMAA TV that the IMF instalment is expected to be issued shortly following Army Chief General Qamar Javed Bajwa’s contact with American authorities. The value of the dollar was artificially increased; its true worth shouldn’t exceed Rs180.

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