The gap between rupee-dollar value in inter-bank and open markets has widened to a record Rs25, signalling a negative outlook on the exchange rate. The difference broadened after the rupee maintained its uptrend for the third straight day in the inter-bank market. It appreciated 0.21%, or Rs0.59, and hit a 10-day high at Rs285.15 against the US dollar on Friday.
On the other hand, the currency dropped 0.32%, or Re1, to a new record low at Rs310 against the greenback in the open market. Talking to The Express Tribune, Taurus Securities Director Research Mustafa Mustansir revealed that four different rupee-dollar exchange rates were being used including the illegal HawalaHundi rate and the Kabuli (Afghanistan) rate.
“Which one is actually the benchmark rate?” he questioned. He, however, said that the rupee’s recovery in the interbank market came on the back of reports that China would lend Pakistan $2.3 billion to help repay $3.7 billion in foreign debt by the end of June 2023.
Besides, the World Bank has approved $213 million for flood-hit Balochistan. Such financing is likely to improve the US dollar flows in the country. Regarding the rupee’s downward trend in the open market, Mustansir stated that a substantial rise in demand for the US dollar and Saudi riyal for Hajj and Umrah pilgrimages mounted some pressure on the rupee.
“The outlook on rupeedollar exchange rate (in the inter-bank market) is negative. Our house has projected the exchange rate at Rs295/$ by the end of June 2023,” the analyst revealed.
Read the full story at the express tribune website.
