Fourth successive loss: rupee's decline continues against US dollar
- The decline comes despite reports that the Qatar Investment Authority is considering investing $3bn in Pakistan
The Pakistani rupee registered a loss for the fourth successive session against the US dollar and depreciated 0.47% in the inter-bank market on Thursday.
As per the State Bank of Pakistan (SBP), the rupee closed at 219.41 after depreciating Rs1.03 or 0.47%.
On Wednesday, the rupee had registered a loss for the third successive session against the US dollar and closed at 218.38 after depreciating Re0.72 or 0.33%.
The decline comes despite reports that the Qatar Investment Authority, one of the world’s largest sovereign funds, is considering investing $3 billion in Pakistan. The move would lend support to the South Asian nation’s cash-strapped economy.
“This was a much-needed boost that would positively impact markets. If it materialises, it would more than meet the external funding gap,” said Trust Securities and Brokerage Limited (TSBL) in a note.
“However, the deterioration in rupee is of concern, hence the timing of this Qatari package and IMF inflows become critical for exchange rate stability."
Meanwhile, oil prices, a key determinant of currency parity, rose on Thursday on mounting supply tightness concerns amid disruptions to Russian exports, the potential for major producers to cut output, and the partial shutdown of a US refinery.
Brent crude rose 45 cents, or 0.4%, to $101.67 a barrel, while US West Texas Intermediate crude was up 32 cents, or 0.3%, at $95.21 a barrel.
In addition, the US dollar index, which measures the greenback against six counterparts, eased 0.19% to 108.42 but remained not far from its highest since September 2002 at 109.29, touched in mid-July.
Inter-bank market rates for dollar on Thursday
BID Rs 219.50
OFFER Rs 220.50
Open-market movement
In the open market, the PKR lost 50 paisas for both buying and selling against USD, closing at 227.50 and 229.50, respectively.
Against Euro, the PKR lost one rupee for both buying and selling, closing at 227 and 229 respectively.
Against UAE Dirham, the PKR lost 50 paisas for both buying and selling, closing at 63 and 63.50, respectively.
Against Saudi Riyal, the PKR remained unchanged for both buying and selling, closing at 60.50 and 61, respectively.
Open-market rates for dollar on Thursday
BID Rs 227.50
OFFER Rs 229.50
Comments
Comments are closed for this article.