- Cumulative depreciation in the past 12 sessions goes to 8.1%
Pakistan's rupee continued to sustain losses against the US dollar for the 12th successive session, settling with a depreciation of 0.45% in the inter-bank market on Monday, as expectation of a higher import bill and the greenback's global strength added to pressure on the currency .
As per the State Bank of Pakistan (SBP), the rupee closed at 237.91 after declining by Rs1.07. During the last 12 trading sessions, the rupee has cumulatively declined by Rs19.31 or 8.1% against the US dollar.
In the previous week, the rupee had lost value in all five sessions for a cumulative fall of 3.7% to end at 236.84, precariously close to its all-time weakest level of 239.94 in the inter-bank market.
The fall can be attributed to several factors including devastating floods and expectations of a higher import bill in the coming months due to higher inward shipments of food-items. Moreover, a rising dollar globally also kept the rupee under pressure.
In a major economic development, the Saudi Fund for Development (SFD) on Sunday confirmed rollover of $3 billion deposits maturing on December 5, 2022, for one year, said the State Bank of Pakistan (SBP) on Sunday.
In a tweet, the central bank said the "deposit is placed with SBP and part of its forex reserves".
However, the announcement is unlikely to alleviate pressure on the rupee, especially since there will be no material impact on the country’s foreign exchange reserves.
Internationally, the dollar lingered near a two-decade top on major peers on Monday, ahead of a week loaded with market holidays and central bank decisions from Washington to London and Tokyo.
The dollar index, which measures the currency against six counterparts, was 0.2% stronger than Friday at 109.84, consolidating after a volatile couple of weeks that took it as high as 110.79 on Sept. 7 for the first time since mid-2002.
Moreover, oil prices, a key indicator of currency parity, fell by more than 1.5% on Monday, pressured by expectations of weaker global demand and by US dollar strength ahead of possible large increases to interest rates, though supply worries limited the decline.
Inter-bank market rates for dollar on Monday
BID Rs 238
OFFER Rs 239
In the open market, the PKR lost 4 rupees for buying and 4.40 rupees for selling against USD, closing at 243 and 245.40, respectively.
Against Euro, the PKR gained 50 paisas for buying and 20 paisas for selling, closing at 241.50 and 243.80 respectively.
Against UAE Dirham, the PKR gained 1.85 rupees for buying and 1.70 rupees for selling, closing at 66.15 and 66.80, respectively.
Against Saudi Riyal, the PKR lost 50 paisas for buying and 65 paisas for selling, closing at 64.50 and 65.15, respectively.
Open-market rates for dollar on Monday
BID Rs 243
OFFER Rs 245.40