Rupee records 3rd successive loss, settles at 222.47 against US dollar

Pakistan’s rupee registered losses for the third successive session against the US dollar, and settled with a depreciation of 0.44% in the inter-bank on Friday.

As per the State Bank of Pakistan (SBP), the rupee closed at 222.47 after a fall of Re0.97. Since October 13, the rupee has decreased by Rs4.09 or 1.84% against the US dollar.

On Thursday, rupee had registered back-to-back losses against the US dollar, and closed at 221.5 after a fall of Re0.82 or 0.37% in the inter-bank.

Markets have been gripped with negative sentiment amid an escalation of political tensions in the country after Pakistan Tehreek-e-Insaf (PTI) Chairman Imran Khan announced to start a ‘long march’ from Lahore to Islamabad on Friday (today).

In another key development, foreign exchange reserves held by the SBP were down $157 million to clock in at $7.44 billion for the week ending October 21, 2022. Pakistan's total liquid foreign exchange reserves also dropped by $89 million to clock in at $13.16 billion.

The reserves’ position is critical for Pakistan which has been desperately seeking dollar inflows to meet its balance-of-payments needs.

Globally, the US dollar struggled to hold on to its overnight gains as expectations for a pivot by the Federal Reserve gathered pace.

Major currencies were higher on the back of a softer dollar, which has declined this week on hopes of a potential Fed pivot.

The US dollar index, which measures the greenback against a basket of currencies, and with the euro the most heavily weighted, fell 0.17% to 110.35.

Oil prices, a key indicator of currency parity, fell on Friday after China, the world’s top crude oil importer, widened its COVID-19 curbs, but were poised for a weekly gain on supply concerns ahead of Europe’s pending cut-off of Russian imports.

Inter-bank market rates for dollar on Friday

BID Rs 222.50

OFFER Rs 223.50

Open-market movement

In the open market, the PKR lost 2.05 rupees for buying and 2.10 rupees for selling against USD, closing at 225.25 and 227.50, respectively.

Against Euro, the PKR gained one rupee for buying and 1.05 rupees for selling, closing at 223.50 and 225.70 respectively.

Against UAE Dirham, the PKR lost 20 paisas for both buying and selling, closing at 64.70 and 65.20, respectively.

Against Saudi Riyal, the PKR lost 60 paisas for both buying and selling, closing at 59.80 and 60.40, respectively.

Open-market rates for dollar on Friday

BID Rs 225.25

OFFER Rs 227.50