KARACHI: The rupee depreciated 1.4 percent during a shortened previous week even as the International Monetary Fund (IMF) announced that it reached a staff-level agreement with Pakistan authorities early on Thursday as the US dollar’s renewed strength and deteriorating economic conditions added to pressure on the local currency.
The rupee lost value in two of the three sessions, gaining only marginally on Thursday – the day the IMF staff-level agreement was announced – as investors bet on the US Federal Reserve ratcheting up interest rates to combat soaring inflation, adding to the dollar strength against the rupee. Additionally, Pakistan saw its foreign exchange reserves fall further with analysts saying that pending import payments were also adding their weight on the rupee’s downward slide.
As a result, the rupee closed near 211 in the inter-bank market on Friday, closing in on its all-time weakest level against the US dollar.
While Finance Minister Miftah Ismail remained confident of further inflows from ‘friendly countries’ and other institutions, the rupee is likely to take direction from oil prices in the international market as well.
In the open market, the PKR lost 1.50 rupees for both buying and selling against USD, closing at 209 and 211, respectively.
Against Euro, the PKR gained 3 rupees for both buying and selling, closing at 208 and 210, respectively.
Against UAE Dirham, the PKR lost 40 paisas for both buying and selling, closing at 56.70 and 57.20, respectively. Against Saudi Riyal, the PKR lost 50 paisas for both buying and selling closing, at 55 and 55.40, respectively.
Weekly Interbank market rates for dollar
Bid Close Rs. 211.00
Offer Close Rs. 211.30
Bid Open Rs. 207.70
Offer Open Rs. 207.90
Weekly Open market rates for dollar
Bid Close Rs. 209.00
Offer Close Rs. 211.00
Bid Open Rs. 207.50
Offer Open Rs. 209.50
Copyright Business Recorder, 2022