Rupee declines marginally, settles at 221.69 against US dollar

Pakistan’s rupee registered another marginal decline, falling 0.02% against the US dollar in the inter-bank market on Monday.

As per the State Bank of Pakistan (SBP), the rupee closed at 221.69 after a depreciation of Re0.05.

Rupee's appreciation run ends, settles at 221.64 against US dollar

On Friday, the rupee had ended its three-session appreciation run against the US dollar, and declined 0.1% in the inter-bank market.

However, overall the currency has remained largely stable, appreciating 0.12% during the previous week against the US dollar. This came as the SBP along with the government introduced various administrative measures to control volatility in the exchange rate.

During the week, the SBP introduced controls to manage fluctuation in the open market, reducing foreign currency cash-carrying limits for travellers and limiting the annual dollar spending threshold for debit and credit card transactions.

However, a massive fall in foreign exchange reserves, which the SBP attributed to external debt servicing, meant Pakistan’s overall position stood at around 1.5 months of import cover. Additionally, a month-on-month decrease in workers’ remittances, a key source of dollar inflow for Pakistan, is also likely to put pressure on the current account

Globally, the US dollar held firm on Monday following last week’s bruising dive as Federal Reserve Governor Christopher Waller said that the central bank was not softening its fight against inflation.

A slightly cooler-than-anticipated inflation data on Thursday sent the greenback on a tailspin, with the dollar index sliding 3.6% over two sessions last week, its biggest two-day percentage loss since March 2009.

US consumer sentiment fell in November, pulled down by persistent worries about inflation and higher borrowing costs, a survey showed on Friday.

Oil prices, a key indicator of currency parity, pared earlier gains and fell on Monday, dragged down by a firmer US dollar and record high coronavirus cases in major Chinese cities that dashed hopes of the reopening of the economy of the world’s biggest crude importer.

Inter-bank market rates for dollar on Monday

BID Rs 221.70

OFFER Rs 222.70

Open-market movement

In the open market, the PKR remained unchanged for both buying and selling against USD, closing at 225.50 and 227.75, respectively.

Against Euro, the PKR remained unchanged for both buying and selling, closing at 240 and 242 respectively.

Against UAE Dirham, the PKR gained 20 paisas for both buying and selling, closing at 64.30 and 64.80, respectively.

Against Saudi Riyal, the PKR gained 20 paisas for both buying and selling, closing at 62.30 and 62.80, respectively.

Open-market rates for dollar on Monday

BID Rs 225.50

OFFER Rs 227.75