- Currency closes at 170.51 in inter-bank market on Monday
After an over 3% gain against the US dollar, Pakistan's rupee weakened on the opening day of the week, depreciating by 50 paisas in the inter-bank market on Monday.
As per the State Bank of Pakistan (SBP), the PKR settled at 170.51 against the USD after a day-on-day depreciation of Rs0.50 or 0.29%. On Friday, the PKR had remained unchanged at 170.01 against the USD.
On Wednesday last week, the rupee had closed below the 170 level for the first time in over a month in the inter-bank market after a 3.1% gain on the back of Saudi Arabia's support package.
The gain came after the rupee had earlier dropped to its lowest level, closing over the 175 level for the first time on October 26.
However, the six-day appreciation run ended in the previous week, and Monday's proceedings saw the rupee close lower once again.
The depreciation comes as inflationary pressure continues to build on Pakistan amid higher commodity prices in the international market.
Additionally, pressure is also due to high imports that clocked in at $6.247 billion in October 2021 as compared to $3.907 billion in the same month of 2020, a growth of 60%. The trade deficit amounted to $3.775 billion in October as compared to $ 1.803 billion in October 2020, widening by 109.4%.
Furthermore, the market keeps awaiting clarity on the International Monetary Fund (IMF) announcement regarding resumption of the Extended Fund Facility (EFF) for Pakistan.
Inter-bank market rates for dollar on Monday
BID Rs 170.51
OFFER Rs 170.61
In the open market, the PKR lost one rupee for both buying and selling against USD, closing at 172 and 173, respectively.
Against Euro, the PKR lost 1.55 rupees for buying and 1.50 rupees for selling, closing at 198.05 and 200, respectively.
Against UAE Dirham, the PKR remained unchanged for buying while losing 10 paisas for selling, closing at 47.60 and 48.10, respectively.
Against Saudi Riyal, the PKR lost 50 paisas for both buying and selling, closing at 45.50 and 45.95, respectively.
Open-market rates for dollar on Monday
BID Rs 172
OFFER Rs 173