KARACHI: The rupee remained largely stable during the previous week, ending only marginally 0.13% lower as market uncertainty around the International Monetary Fund (IMF) programme settled.
While some market experts say the rupee will stay range-bound, another group sees some level of appreciation in the coming days with inflows from the Sukuk issuance and plans to float further bonds boost Pakistan’s foreign exchange reserves.
However, there was a unanimous opinion on the need to create dollar inflows through exports and foreign direct investment to reduce reliance on debt and remittances. Overseas workers’ remittances also registered a month-on-month drop in January, clocking in at a little over $2.1 billion.
The dollar is also expected to get a boost after comments from a Federal Reserve official unleashed a wave of bets on aggressive rate hikes as US inflation surged to a 40-year peak. Effects of Euro gaining strength in the international market were also felt in the Pakistani market where the rupee ended the week touching 202.
In the open market, the PKR lost 50 paisas for both buying and selling over the week, closing at 176.50 and 177.50, respectively.
Against Euro, the PKR lost 50 paisas for buying and one rupee for selling over the week, closing at 200 and 202, respectively. Against UAE Dirham, the PKR recorded net loss of 2 paisas for buying and 10 paisas for selling, closing at 48.92 and 49.40, respectively. Against Saudi Riyal, the PKR overall lost 25 paisas for buying and 20 paisas for selling, closing at 46.55 and 47, respectively.
Weekly Interbank market rates for dollar
Bid Close Rs. 174.75
Offer Close Rs. 174.85
Bid Open Rs. 174.35
Offer Open Rs. 174.45
Weekly Open market rates for dollar
Bid Close Rs. 176.50
Offer Close Rs. 177.50
Bid Open Rs. 176.00
Offer Open Rs. 177.00
Copyright Business Recorder, 2022