Dollar remains stable in interbank
Business
Kerb markets show no exchange rate
KARACHI (Web Desk) - The exchange rate remained stable, with no changes observed in both the interbank or kerb markets.
According to official data released by the State Bank of Pakistan (SBP), the dollar rate remained at Rs278.80, holding the same value as the previous day's closing rate of Rs278.81. Similarly, in the open market, the exchange rate remained unchanged at Rs280 on a day-to-day basis.
This stability in the exchange rate is attributed to a successful crackdown by multiple agencies on the hoarding and smuggling of the dollar, which has strengthened the local currency against the US dollar for 28 consecutive sessions.
The dollar rate has significantly decreased from its peak of just over Rs307 on September 5th to Rs277 on October 17th.
However, this winning spot came to an end earlier this week when the rupee faced pressure due to dollar payments, such as the recent six-month interest payment on Pakistan's dollar-denominated Eurobond.
Tahir Abbas, the Head of Research at Arif Habib Ltd, predicts that the exchange rate will consolidate in the range of Rs275-280 in the future. The direction of the exchange rate will largely depend on the upcoming review of Pakistan's loan program by the International Monetary Fund (IMF) in November, which is a crucial condition for receiving the next tranche needed to maintain the country's balance of payments.
A positive review by the IMF would open the door to foreign exchange inflows from other international financial institutions. Additionally, coming data on export proceeds and overseas workers' remittances will play a role in determining the direction of the exchange rate.
