KARACHI: The rupee endured another horrendous week, closing at an all-time low of 208.75 against the US dollar after a 3.1% fall over the course of five sessions in the inter-bank market.
Consistent fall in foreign exchange reserves, an aggressive rate hike by the US Federal Reserve, increasing oil prices, and uncertainty over revival of the stalled International Monetary Fund (IMF) programme were all to blame as the rupee depreciated from Monday to Friday, consistently hitting new lows.
During the course of the week, increased uncertainty over the IMF was witnessed as reports indicated that the lender was displeased with the Pakistan budget. This threw another spanner in the way of programme-revival, causing further distress in the currency market that saw foreign exchange reserves held by the State Bank of Pakistan (SBP) fall under $9 billion.
While Pakistan moved to appease the lender by increasing fuel prices, that did little to arrest the rupee-slide as all eyes remained on IMF.
The currency is likely to remain under pressure until clarity emerges on the IMF front.
Open-market rates
In the open market, the PKR lost8.50 rupees for buying and 9 rupees for selling against USD, closing at 210 and 212, respectively.
Against Euro, the PKR lost 7 rupees for bothbuying and selling, closing at 221 and 223, respectively.
Against UAE Dirham, the PKR lost 2.30 rupees for buying and 2.20 rupees for selling, closing at 57.10 and 57.50, respectively.
Against Saudi Riyal, the PKR lost 2.30 rupees for buying and 2.20 rupees for selling closing, at 55.90 and 56.30, respectively.
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THE RUPEE
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Weekly Interbank market rates for dollar
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Bid Close Rs. 208.90
Offer Close Rs. 209.10
Bid Open Rs. 202.50
Offer Open Rs. 202.70
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Weekly Open market rates for dollar
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Bid Close Rs. 210.00
Offer Close Rs. 212.00
Bid Open Rs. 201.50
Offer Open Rs. 203.00
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Copyright Business Recorder, 2022
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