KARACHI: The rupee fell nearly 2.2% against the US dollar during the previous week, shedding value in three of the five sessions as falling foreign exchange reserves, Moody’s downgrade of Pakistan as well as five of its major banks’ outlook took toll on the currency market.
Starting near the 198 level, the rupee ended at 202.35, precariously close to its weakest level in history, against the dollar.
During the week, the State Bank of Pakistan (SBP) reported that its foreign exchange reserves fell to $9.23 billion, while total liquid foreign reserves held by the country stood at $15.18 billion as of June 3.
Delay in revival of the International Monetary Fund (IMF) programme as well as Moody’s downgrade of outlook for both the government and its banks also added to the pressure.
Rupee sheds 0.78% against US dollar owing to drop in forex reserves
At the same time, oil prices showed no signs of respite, adding to concerns of Pakistan’s high import bill. Remittance data showed a slowdown month-on-month as well, raising fears of a widening current account deficit.
Open-market rates
In the open market, the PKR lost 4.50 rupees for both buying and selling against USD, closing at 201.50 and 203, respectively.
Against Euro, the PKR lost 4 rupees for both buying and selling, closing at 214 and 216, respectively.
Against UAE Dirham, the PKR lost 1.10 rupees for both buying and selling, closing at 54.80 and 55.30, respectively.
Against Saudi Riyal, the PKR lost 1.50 rupees for buying and 1.60 rupees for selling closing, at 53.60 and 54.10, respectively.
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THE RUPEE
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Weekly Interbank market rates for dollar
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Bid Close Rs. 202.50
Offer Close Rs. 202.70
Bid Open Rs. 197.80
Offer Open Rs. 198.00
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Weekly Open market rates for dollar
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Bid Close Rs. 201.50
Offer Close Rs. 203.00
Bid Open Rs. 197.00
Offer Open Rs. 198.50
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Copyright Business Recorder, 2022
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