IN THE INTERBANK MARKET, THE US DOLLAR DECLINES TO RS237.

After days of increases in the interbank and open markets, the US dollar fell against the rupee on Tuesday, despite assurances from the government and the SBP that the country will have enough cash for FY2022-23 after receiving IMF tranches.

According to forex dealers, the US dollar fell Rs0.94 in the interbank market and is now trading at Rs237.90. Banks are selling the US dollar for Rs238.50. The US dollar fell to Rs239 in the open market after reaching Rs250.

The rupee’s freefall against the US dollar continued early Friday in the interbank market, but it reversed the losses in the second half on rumours that COAS Qamar Bajwa had approached the US for a role in the immediate release of a US$1.2 billion tranche.

The State Bank of Pakistan (SBP) previously attributed the 11-rupee movement in the exchange rate in just two days to a “market-determined exchange rate system” in which current account position, news items, and internal instability all contribute to daily currency fluctuations.