- Depreciates to 175.46 in inter-bank market on Friday
Pakistan's rupee weakened against the US dollar to close near its historic low after another round of depreciation in the inter-bank market on Friday.
As per the State Bank of Pakistan (SBP), the PKR finished at 175.46 against the USD after a day-on-day depreciation of 48 paisas or 0.27%. On Thursday, the rupee had closed at 174.98 against the dollar in the inter-bank market.
Its all-time low against the US dollar (closing rate) is 175.73, which it hit on November 12, 2021.
Reports suggest the rupee crossed even the 176 level in intra-day trading on Friday.
The fall comes despite a staff-level agreement reached between Pakistani authorities and the International Monetary Fund (IMF) earlier this week.
However, the decline in SBP's net reserves by $691.3 million to $16.254 billion has dented investor confidence, said Head of Research at Arif Habib Limited Tahir Abbas.
Total liquid foreign reserves held by the country stood at $22.77 billion on November 19, 2021, stated the SBP on Thursday. Net foreign reserves held by commercial banks stood at $6.519 billion, while SBP’s reserves decreased mainly due to external debt repayment.
“The current account deficit has also increased. The market is waiting for the release of multi-billion dollars funding from Saudi Arabia, which is leading to volatility," Abbas told Business Recorder.
Pakistan’s current account deficit widened to $1.66 billion in October 2021 from a surplus of $448 million recorded in the same month last year. On a monthly basis, CAD widened 46% as compared to $1.13 billion recorded in the previous month (September 2021).
Abbas pointed out that commodity prices have started to come down, and could have a positive impact on curtailing Pakistan’s import bill. This, in turn, would reduce the current account deficit and ease pressure on the rupee.
Meanwhile, Adviser to PM on Finance and Revenue Shaukat Tarin also once again warned speculators that Pakistan's rupee would reverse its downward course amid measures taken by the government.
Inter-bank market rates for dollar on Friday
BID Rs 175.30
OFFER Rs 175.50
In the open market, the PKR lost one rupee for both buying and selling against USD, closing at 178 and 179, respectively.
Against Euro, the PKR lost 50 paisas for buying and one rupee for selling, closing at 198 and 200, respectively.
Against UAE Dirham, the PKR lost 60 paisas for buying and 50 paisas for selling, closing at 50.30 and 50.70, respectively.
Against Saudi Riyal, the PKR gained 10 paisas for buying while remaining unchanged for selling, closing at 47 and 47.40, respectively.
Open-market rates for dollar on Friday
BID Rs 178
OFFER Rs 179