The Exchange Companies Association of Pakistan reports that the open market exchange rate for a dollar is Rs306 (US).
According to information provided by the Exchange Companies Association of Pakistan (ECAP), the local currency finished at Rs297.13 on Monday, up Rs1.35 from the previous week's close of Rs295.78.
In order to stop the drain on its dwindling foreign reserves, Pakistan introduced import restrictions beginning in 2022. As a requirement of a $3 billion International Monetary Fund (IMF) loan package to support the crisis-ridden economy, those limits had to be lifted starting in June.
Khurram Schehzad, the CEO of financial consultancy firm Alpha Beta Core, claimed that the rupee's "excessive" depreciation was due to the IMF's requirement for open market-interbank parity as a condition of its bailout.
He told Dawn.com, "As I said earlier, the policy of adhering to open market parity (with 1.25pc prem) was flawed, making it difficult to sustain." This can be seen in the way the informal market (interbank market) is being driven by the open market and how the PKR is being overly weakened as a result.
According to Tahir Abbas, head of research at Karachi-based trading firm Arif Habib, the rupee is now forecast to trade between 295 and 305 to the dollar.
The easing of import restrictions and the clearing of backlogs for products and services, he added, were the key causes of the falling trend.
He continued by saying that because international firms were able to repatriate some profits, rupee outflows increased.
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