Pakistan's rupee fell further against the US dollar, depreciating by two paisas to close at a fresh low in the inter-bank market on Tuesday.
As per the State Bank of Pakistan (SBP), the PKR closed at 178.19 against the USD after a day-on-day depreciation of two paisas or 0.01%. On Monday, just a day ago, the PKR had closed at the then-record low of 178.17 against the USD.
Cumulatively, the rupee has depreciated over 11% CYTD and 13% on a FYTD basis against the US dollar.
Against USD: Pakistan's rupee falls marginally, ends at fresh historic low
“Rupee rout may have halted around 178.25, but demand for US dollar persists,” tweeted Asad Rizvi, ex-Treasury Head at Chase Manhattan Bank.
Rizvi said that in the last two weeks sellers have become choosy to offer US dollar to banks.
“During this period oil price surged by $8 per barrel. If it stays higher, it can cause a huge trade imbalance,” said Rizvi, which could further skyrocket deficit and inflation, he added.
Meanwhile, the Ministry of Finance in its monthly economic outlook for December 2021, while observing a higher growth trajectory for Pakistan, said that there is inflationary pressure due to low base effects and surge in global commodity prices.
However, both international food and oil prices are currently quoted at or near the upper regions of the present international commodity price cycles, and drop is expected in the coming months, added the ministry.
The current account posted a deficit of $7.1 billion for July-November 2022 as against a surplus of $1.9 billion last year. Meanwhile, workers’ remittance were recorded at $12.9 billion against $11.8 billion last year, an increase of 9.7%.
Inter-bank market rates for dollar on Tuesday
BID Rs178.10
OFFER Rs178.20
Open-market movement
In the open market, the PKR gained 1.30 rupees for buying and 70 paisas for selling against USD, closing at 179.50 and 180.50 respectively.
Against Euro, the PKR gained 50 paisas for both buying and selling, closing at 200.50 and 202, respectively.
Against UAE Dirham, the PKR remained unchanged for both buying and selling, closing at 50.80 and 51.20, respectively.
Against Saudi Riyal, the PKR gained 10 paisas for buying and 20 paisas for selling, closing at 47.10 and 47.40, respectively.
Open-market rates for dollar on Tuesday
BID Rs179.50
OFFER Rs180.50
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