KARACHI: Pakistani currency made a remarkable comeback of almost 5.5%, or Rs16, in a single day to a one-week high at Rs295 against the US dollar in the open market on Thursday.
The currency had closed at Rs311 against the greenback a day earlier, according to the Exchange Companies Association of Pakistan (ECAP). Accordingly, the gap in the rupee-dollar exchange rate between interbank and open markets narrowed down to about Rs10 compared to around Rs27 a day ago.
The currency has continued to stabilise around Rs285/$ in the interbank market for the past couple of weeks. The widening gap in the value of the rupee between the two markets had led the International Monetary Fund to recommend the government “focus on restoration of proper foreign exchange market functioning.”
The correction in the open market became possible after the State Bank of Pakistan allowed commercial banks to purchase US dollars from the interbank market to settle international payments made through credit cards by their clients.
Earlier, they were buying an average of $10 million a day from the interbank market to settle credit card payments in overseas markets.
