KARACHI: The rupee appreciated marginally by 0.23% in the inter-bank market against the US dollar during the previous week, but its gap with the open market rates continued to persist.
The currency settled at 285.15 on Friday, strengthening in three of the five sessions, but its rate in the open market hovered between 307-310.
A persistent delay in the International Monetary Fund (IMF) programme, which is due to end in June, fear of default, and an inability to ensure dollar inflow through legal channels has kept the market under pressure.
Finance Minister Ishaq Dar did look to pacify concerns on Pakistan’s default risk, but falling foreign exchange reserves caused increasing worries.
Foreign exchange reserves held by the State Bank of Pakistan (SBP) decreased by another $119 million, clocking in at nearly $4.2 billion as of May 19, data released on Thursday showed.
The overall number still stands at a critical level at around a month of import cover and, despite a current account surplus for two months, will continue to worry policymakers. Heightened political noise and uncertainty on the way forward in terms of holding elections have only added to the concerns in recent weeks.
Open-market rates
In the open market, the PKR lost 9 rupees for both buying and selling against USD, closing at 307.00 and 310.00, respectively.
Against Euro, the PKR lost 10 rupees for both buying and selling, closing at 331 and 334 respectively.
Against UAE Dirham, the PKR lost 2.20 rupees for buying and 2.30 rupees for selling, closing at 84.20 and 85.00, respectively.
Against Saudi Riyal, the PKR lost 3.50 rupees for buying and 3.60 rupees for selling, closing at 82.50 and 83.30, respectively.
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THE RUPEE
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Weekly inter-bank market rates for dollar
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Bid Close Rs. 285.15
Offer Close Rs. 285.40
Bid Open Rs. 285.80
Offer Open Rs. 286.00
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Weekly open-market rates for dollar
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Bid Close Rs. 307.00
Offer Close Rs. 310.00
Bid Open Rs. 298.00
Offer Open Rs. 301.00
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Copyright Business Recorder, 2023
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