BAFL 45.65 Increased By ▲ 0.55 (1.22%)
BIPL 20.15 Decreased By ▼ -0.10 (-0.49%)
BOP 5.34 Decreased By ▼ -0.06 (-1.11%)
CNERGY 4.55 Increased By ▲ 0.02 (0.44%)
DFML 16.10 Increased By ▲ 0.42 (2.68%)
DGKC 77.60 Increased By ▲ 4.72 (6.48%)
FABL 27.60 Increased By ▲ 0.45 (1.66%)
FCCL 18.86 Increased By ▲ 1.21 (6.86%)
FFL 9.00 Decreased By ▼ -0.09 (-0.99%)
GGL 12.82 Increased By ▲ 0.18 (1.42%)
HBL 112.51 Increased By ▲ 1.85 (1.67%)
HUBC 122.60 Increased By ▲ 1.08 (0.89%)
HUMNL 7.57 Increased By ▲ 0.22 (2.99%)
KEL 3.30 Increased By ▲ 0.07 (2.17%)
LOTCHEM 28.00 Increased By ▲ 0.68 (2.49%)
MLCF 41.90 Increased By ▲ 2.57 (6.53%)
OGDC 109.40 Increased By ▲ 1.40 (1.3%)
PAEL 18.80 Increased By ▲ 1.24 (7.06%)
PIBTL 5.50 Increased By ▲ 0.04 (0.73%)
PIOC 112.80 Increased By ▲ 4.80 (4.44%)
PPL 93.15 Increased By ▲ 1.40 (1.53%)
PRL 25.20 Increased By ▲ 0.32 (1.29%)
SILK 1.10 Increased By ▲ 0.02 (1.85%)
SNGP 63.50 Increased By ▲ 0.40 (0.63%)
SSGC 12.09 Increased By ▲ 0.20 (1.68%)
TELE 8.40 Increased By ▲ 0.21 (2.56%)
TPLP 13.50 Increased By ▲ 0.39 (2.97%)
TRG 83.02 Increased By ▲ 1.41 (1.73%)
UNITY 26.00 Increased By ▲ 0.25 (0.97%)
WTL 1.56 Increased By ▲ 0.04 (2.63%)
BR100 6,279 Increased By 97.9 (1.58%)
BR30 21,869 Increased By 330 (1.53%)
KSE100 61,447 Increased By 915.7 (1.51%)
KSE30 20,495 Increased By 306.7 (1.52%)

Rupee closes at 210.1 after over 1% fall against US dollar

  • Falling foreign exchange reserves and uncertainty over IMF programme drive currency's depreciation
Published July 13, 2022

Pakistan's rupee registered a significant decline against the US dollar in its first trading session after the Eid break, as the currency closed at the 210 level in the inter-bank market on Wednesday.

As per the State Bank of Pakistan (SBP), the currency settled at 210.1, a depreciation of Rs2.19 or 1.04%, against the greenback.

In its previous session on Thursday last week, the local currency had closed at 207.91 after an appreciation of eight paisas or 0.04%. During the shortened week, the rupee fell nearly 1.5% against the US dollar in the inter-bank market, as renewed uncertainty over the International Monetary Fund (IMF) programme disrupted the currency’s upward ride.

Pakistan’s foreign exchange reserves also took a hit, putting the rupee under further pressure, while the central bank announced it was increasing the key interest rate by 125 basis points, taking it to 15%.

Meanwhile, oil prices, a key determinant of currency parity, edged up on Wednesday, a day after prices fell through $100 a barrel for the first time since April, but gains were limited by caution ahead of US inflation data that could weaken the market.

Brent crude futures were up 45 cents, or 0.5%, at $99.97 a barrel, while US West Texas Intermediate crude gained 44 cents, or 0.5%, to $95.27.

The decline in local currency value comes as experts have said that rupee is likely to remain under pressure until resumption of the IMF programme.

“The depreciation was expected post-Eid holidays,” Samiullah Tariq, Head of Research at Pak Kuwait Investment Company Limited, told Business Recorder.

“As markets were closed due to Eid holidays, there were no export LCs available to counter the import payments, which put pressure on the local currency.

“Remittance inflows post a decline after Eid as well, while the dollar is also gaining strength against other currencies."

Tariq added that revival of the IMF programme would bring some relief to the currency market.

Last week, former finance minister Shaukat Tarin had said speculators were driving the rate of dollar upwards, and the greenback should not be more than Rs185 based on Pakistan’s real effective exchange rate (REER), which is the value of a country’s currency against a basket of currencies of global trading partners.

“While exporters are the main speculators, the role of exchange companies and banks cannot be ruled out,” he had said while talking to media persons.

Inter-bank market rates for dollar on Wednesday

BID Rs 210.70

OFFER Rs 210.90

Open-market movement

In the open market, the PKR lost 2 rupees for both buying and selling against USD, closing at 209.50 and 211.50, respectively.

Against Euro, the PKR gained 2 rupees for both buying and selling, closing at 209 and 211, respectively.

Against UAE Dirham, the PKR lost 50 paisas for both buying and selling, closing at 56.80 and 57.30, respectively.

Against Saudi Riyal, the PKR lost 50 paisas for buying and 60 paisas for selling, closing at 55 and 55.50, respectively.

Open-market rates for dollar on Wednesday

BID Rs 209.50

OFFER Rs 211.50


Comments are closed.

Rupee closes at 210.1 after over 1% fall against US dollar

Intra-day update: rupee registers minor gain against US dollar

Open-market: rupee continues to strengthen against US dollar

COP28: Caretaker PM Kakar arrives at Dubai Expo City

Pakistan’s Supreme Court begins hearing challenge to expulsion of Afghans

Automakers continue to shut production amid falling demand, raw material shortage

Oil prices recover from slump after underwhelming OPEC+ cuts

Govt embarks on restructuring PIA, PSM, railways

Once in every 5 years: Govt would be required to design ‘SOEs policy’

GDP likely to decrease due to climate challenges: World Bank

Jul-Nov collection exceeds target