Rupee makes its way back to below Rs291 mark against dollar
Last updated on: 28 September,2023 10:31 am
Dollar exchange rate in open market now stands at Rs293
KARACHI (Web Desk) – The rupee in Pakistan started the new business week from the point it had closed the last one with another Rs1.06 gain against the US dollar, as the local currency continues recovering from the worst slide in its history.
With some circles confident of the rupee bouncing back to the Rs250 mark in the coming weeks, it was available for Rs290.70 in interbank exchange rate during early trading on Monday. The closing value on Friday – the last working day of the previous business week – was recorded at Rs291.76.
Similar trend is being witnessed in open market with the US dollar being traded for Rs293, meaning that the rupee has appreciated by Rs2.
The rupee had started nosediving last month when its official exchange rate dropped to Rs299 on August 22. Previously, it was earlier this year on May 11 when the dollar had jumped to Rs298.93. Later, the local currency depreciated to the new record to low of Rs307.10.
Later, the local currency depreciated to a new record low of Rs307.10 in interbank and Rs333 in open market trading, worsening the cost-of-living crisis in the country which is witnessing record-high inflation amid rising food prices and the repeated increase in energy rates.
However, things started changing earlier this month when the rupee bounced back both in interbank and open market exchange rates as the government clamped down on market manipulators and dollar’s smuggling across Pakistan’s western borders into Afghanistan.
Read more: Pakistan military helps stifle currency black market to stabilise rupee
The devaluation experienced by the rupee since 2018 has triggered in the economic mess we are in today resulting increase in import bill, cost of doing business, cost of living, and rising food and fuel prices – the factors that are sustaining inflation in the country.
Unless Pakistan achieves a marked improvement in the rupee exchange rate, arresting the out-of-control inflation will remain a pipe dream.