- Loses value for 11th successive session, taking cumulative fall to 7.7%
Pakistan's rupee continued to sustain losses against the US dollar for the 11th successive session, settling with a depreciation of 0.41% in the inter-bank market on Friday, as the greenback strengthened globally while investors remained concerned over the widening trade deficit.
As per the State Bank of Pakistan (SBP), the rupee closed at 236.84 after declining by Re0.96. During the last 11 trading sessions, the rupee has cumulatively declined by Rs18.24 or 7.7% against the US dollar.
On Thursday, Pakistan's rupee had sustained losses against the US dollar for the 10th successive session, settling with a depreciation of 0.66% at 235.88 in the inter-bank market as investors awaited funding from friendly countries and international creditors.
The local currency had gained some ground last month as Pakistan met all prior conditions of the International Monetary Fund (IMF), which lead to resumption of the programme, a development that helped it secure $1.17 billion of inflow under the Extended Fund Facility (EFF).
However, lately, the local currency has come under severe pressure yet again, hovering near its all-time low as funding expected from friendly countries has not materialised yet.
Moreover, foreign exchange reserves held by the State Bank of Pakistan (SBP) dipped $176 million, clocking in at $8.62 billion as of September 9, 2022, according to data released on Thursday.
Total liquid foreign reserves held by the country stood at $14.32 billion, said the SBP. Net foreign reserves held by commercial banks amounted to $5.7 billion.
Globally, the dollar hovered near its recent peaks on Friday as expectations that the Federal Reserve would need to hike more to tame inflation sent Treasury yields higher and kept the greenback in demand.
The US dollar index, which measures the greenback against a basket of currencies, firmed at 109.69, close to its two-decade peak of 110.79.
Meanwhile, oil prices, a key determinant of currency parity, were broadly steady on Friday but on track for a weekly decline on fears of sharp interest rate increases expected to curb global economic growth and fuel demand.
Inter-bank market rates for dollar on Friday
BID Rs 237
OFFER Rs 238
In the open market, the PKR remained unchanged for both buying and selling against USD, closing at 239 and 241, respectively.
Against Euro, the PKR lost remained unchanged for both buying and selling, closing at 242 and 244 respectively.
Against UAE Dirham, the PKR lost 50 paisas for both buying and selling, closing at 68 and 68.50, respectively.
Against Saudi Riyal, the PKR remained unchanged for both buying and selling, closing at 64 and 64.50, respectively.
Open-market rates for dollar on Friday
BID Rs 239
OFFER Rs 241