- Closes at 207.94 in inter-bank market on Monday
Rupee depreciated marginally for the second-consecutive session on Monday, falling 46 paisas against the US dollar in the inter-bank as the market awaited revival of the International Monetary Fund (IMF) programme.
As per the State Bank of Pakistan (SBP), the rupee closed with a loss of 46 paisa or 0.22% to close at Rs207.94 against the greenback.
The rupee closed last week with a 0.61% gain against the US dollar, but not before it had plummeted to its all-time low of 211.93 in the inter-bank market on Wednesday.
The rupee lost value in four of the five sessions during the previous week, but on Thursday it posted its biggest day-on-day appreciation, in absolute terms, against the US dollar in history. The gain that one day alone was Rs4.7, taking the currency from 211.93 to 207.23.
On Friday, the rupee depreciated marginally to close the week at 207.48.
The improvement in currency last week came on the back of “progress on budget measures” with the IMF as well as hope of foreign exchange inflow after Finance Minister Miftah Ismail announced that the Chinese consortium had agreed to extend the roughly $2.3-billion loan.
Meanwhile, market analysts said that the market is waiting for the IMF approval.
“Pakistan remains in negotiations with Saudi Arabia to enhance an oil facility on deferred payments facility to $3.6 billion from an existing $1.2 billion,” said Abdullah Umer, analyst at Ismail Iqbal Securities Limited, adding that if it materialises this would strengthen the local currency.
He added that the government’s demand-cutting measures will also slow consumption.
“Oil Marketing Companies (OMCs) have said that the daily consumption has declined by 15-20% after 16 June, which would reduce the import bill in coming months. Furthermore, the imposition of sales tax on petroleum products would also dent consumption,” he added.
The reduction in import bill bodes well for the rupee. A reduction in the import bill narrows the current account deficit, easing pressure on the exchange rate.
Inter-bank market rates for dollar on Monday
BID Rs 207.30
OFFER Rs 207.50
In the open market, the PKR gained 2.50 rupees for both buying and selling against USD, closing at 204.50 and 206.50, respectively.
Against Euro, the PKR gained 2 rupees for buying and 3 rupees for selling, closing at 215 and 216, respectively.
Against UAE Dirham, the PKR lost 20 paisas for both buying and selling, closing at 56 and 56.50, respectively.
Against Saudi Riyal, the PKR remained unchanged for both buying and selling, closing at 54.80 and 55.30, respectively.
Open-market rates for dollar on Monday
BID Rs 204.50
OFFER Rs 206.50