US Dollar depreciates sharply against PKR in open market since the start of 2023

The US Dollar depreciated sharply against the PKR since the start of 2023, on Thursday.

Thursday saw the rupee rise sharply against the US dollar in the open market by almost 5.5%, or Rs16, in a single day to a one-week high at Rs295 against the US dollar in the open market at around midday on Thursday.

The development comes as the State Bank of Pakistan (SBP) allowed the banks to buy dollars at the interbank market rate to settle international credit card payments.

Malik Bostan, Chairman Exchange Companies Association of Pakistan (ECAP), said that”This is for the first time in Pakistan that the dollar rate has fallen by Rs27,” and he congratulated Finance Minister Ishaq Dar and the SBP governor.

In the interbank market, the local currency closed at Rs285.47/$, according to the State Bank of Pakistan.

The local currency had closed at Rs311 against the greenback on Wednesday, according to the Exchange Companies Association of Pakistan (ECAP).

According to Bostan, Ishaq Dar had contacted him when the dollar reached Rs315 asking the reasons behind the widening gap in interbank and open market rates.

“After hearing this, the finance minister took the decision promptly and issued the circular yesterday.”

This is a testing period till July 31, said Bostan, and hoped that the rupee rate will increase further.