11th straight fall: rupee records marginal loss against US dollar

Pakistan’s rupee registered a marginal loss against the US dollar on Wednesday and closed weaker for the 11th successive session.

As per the State Bank of Pakistan (SBP), the rupee was down Re0.01 to close at 226.95.

On Tuesday, the rupee depreciated against the US dollar for the tenth straight session to settle at 226.94 after a decline of Re0.51 or 0.22%.

In a key development, Pakistan’s trade deficit shrank by 32.65% to $17.133 billion during the first half (July-December) of the current fiscal year as compared to $25.438 billion during the same period of last year, said the latest data released by the Pakistan Bureau of Statistics (PBS).

The decline in trade deficit is positive for the cash-strapped economy, which has witnessed a significant drop in its foreign exchange reserves, while the country struggles to obtain funding from international and multilateral lenders.

In addition, the government of Pakistan on Tuesday announced a host of energy saving measures that were aimed at reducing the energy import bill of the country.

Globally, the euro steadied on Wednesday and riskier currencies bounced, lifted by optimism China’s eventual emergence from COVID restrictions help growth, while investor focus turned to US data and the Federal Reserve.

The US dollar index rose 1% on Tuesday to 104.73, mostly due to the euro’s drop, and it eased a little on Wednesday to 104.47. Sterling hovered at $1.1986 and the kiwi nudged 0.3% higher to $0.6263.

Oil prices, a key indicator of currency parity, edged lower on Wednesday after slumping in the previous session, weighed down by concerns about weak demand due to the state of the global economy.

Inter-bank market rates for dollar on Wednesday

BID Rs 227

OFFER Rs 228

Open-market movement

In the open market, the PKR remained unchanged for both buying and selling against USD, closing at 233.75 and 236, respectively.

Against Euro, the PKR lost one rupee for both buying and selling, closing at 264 and 266 respectively.

Against UAE Dirham, the PKR lost 20 paisas for both buying and selling, closing at 68.70 and 69.20, respectively.

Against Saudi Riyal, the PKR lost 20 paisas for both buying and selling, closing at 66.20 and 66.70, respectively.

Open-market rates for dollar on Wednesday

BID Rs 233.75

OFFER Rs 236