Rupee registers 0.93% fall against US dollar amid political noise

Pakistan's rupee registered a drop of 0.93% against the US dollar as political noise engulfed the market on Monday.

As per the State Bank of Pakistan (SBP), the rupee settled at 216.66 against the US dollar after depreciating Rs2.01 or 0.93%.

Rupee registers marginal gain against US dollar

The rupee closed the previous week with a marginal gain of 0.4%, settling at 214.65 on Friday with analysts believing that the currency had reached a short-term equilibrium.

Since July 28, the rupee registered a significant recovery against the US dollar, which came in tandem with news that the International Monetary Fund (IMF) will hold its Executive Board meeting on August 29.

The lender’s statement came after it was reported that Pakistan has secured commitments of financing during the current fiscal year, with the UAE and Saudi Arabia among the ‘friendly countries’ offering assurances.

On the current trend, analysts said markets are reacting to political developments, which have flared up after the Islamabad police on Saturday night registered a First Information Report (FIR) against former prime minister and Pakistan Tehreek-e-Insaf (PTI) Chairman Imran Khan for terrorising police as well as the judiciary in his speech at F-9 Park on Saturday.

“If the political situation worsens, it will be reflected in the market and vice versa,” Fahad Rauf, Head of Research at Ismail Iqbal Securities Limited, told Business Recorder.

The analyst was of the view that the rupee would trade in the 215-220 range.

“The dollar is strengthening in international markets. Meanwhile, the rupee is approaching its fair value after the REER (Real Effective Exchange Rate) inched up to 98,” he said.

Inter-bank market rates for dollar on Monday

BID Rs 216.50

OFFER Rs 217

Open-market movement

In the open market, the PKR lost 4 rupees for both buying and selling against USD, closing at 220 and 222, respectively.

Against Euro, the PKR lost 2 rupees for both buying and selling, closing at 220 and 222 respectively.

Against UAE Dirham, the PKR lost 1.60 rupees for buying and 1.50 rupees for selling, closing at 61.20 and 61.70, respectively.

Against Saudi Riyal, the PKR lost 1.10 rupees for both buying and selling, closing at 58.30 and 58.80, respectively.

Open-market rates for dollar on Monday

BID Rs 220

OFFER Rs 222