KARACHI: Pakistan's rupee fell for the fourth successive time, depreciating to a record low against the US dollar in the inter-bank market on Thursday.
As per the State Bank of Pakistan (SBP), the PKR closed at 171.20 against the USD, a day-on-day depreciation of seven paisas or 0.04%. On Wednesday, the PKR had dropped to the then-record low of 171.13.
Market experts believe the pressure on PKR is likely to persist, as all eyes are glued on outcome of the delayed 6th review of the International Monetary Fund's (IMF) Extended Fund Facility.
Pakistan’s rupee has depreciated over 11% since its recent high in May this year, on account of a widening current account deficit, and rising imports.
Analysts have also expressed concerns that the country’s imports are expected to grow up to $70 billion this year as most of the raw material is being imported.
“If the increase is in volume, it is a good sign and shows development. But if the increase is in prices, it is not a good sign and a vital factor behind inflation,” said Ateeq ur Rehman, an economic & financial analyst.
The impact of PKR devaluation has also been felt on the stock market with listed companies' earnings also set to take a hit.
“Its impact would be felt at the micro-level as well because the prices of raw material of our industries would increase, which will impact their margins, and demand will be curtailed, which could taper off growth as well,” said Arif Habib Limited CEO Shahid Ali Habib earlier.
In the open market, the PKR lost 40 paisas for buying and 10 paisas for selling against USD, closing at 171.70 and 172, respectively.
Against Euro, the PKR lost 50 paisas for buying and one rupee for selling, closing at 197.50 and 199, respectively.
Against UAE Dirham, the PKR lost 10 paisas for both buying and selling, closing at 48 and 48.20, respectively.
Against Saudi Riyal, the PKR lost 10 paisas for both buying and selling as well, closing at 45.50 and 45.70, respectively.
======================== Open Bid Rs 171.70 Open Offer Rs 172.00 ========================
Interbank Closing Rates: Interbank Closing Rates For Dollar on Thursday.
======================== Open Bid Rs 171.15 Open Offer Rs 171.25 ========================
RUPEE IN LAHORE: The Pak rupee maintained its downtrend for the third consecutive day against the greenback in the open currency market on Thursday.
According to the local currency dealers, the short supply phenomenon of the greenback continued to prevail for another day in the market which helped further its appreciation for buying and selling at Rs 171.60 and Rs 172.40 against the overnight closing rate of Rs 171.40 and Rs 174.20, respectively.
Moreover, the rupee failed to hold its earlier recoveries and declined its worth against the pound sterling. Consequently, the pound’s buying and selling rates rose from Wednesday’s closing of Rs 231.70 and Rs 233.20 to Rs 233.70 and Rs 235.20, respectively, they added.
RUPEE IN ISLAMABAD AND RAWALPINDI: The dollar gained further strength against the rupee at the open currency markets of Islamabad and Rawalpindi here on Thursday.
There was a shortage of dollars at the local kerb markets throughout the day's trading activities.
The dollar opened at Rs 172.50 (buying) and Rs 172.60 (selling) against the last rate of Rs 171.40(buying) and Rs 171.50(selling).
It closed at Rs 172.50 (buying) and Rs 172.60 (selling).
The buying and selling rates of one tola of gold was Rs. 115,000(buying) and Rs115,500 (selling).
Copyright Business Recorder, 2021