Rupee continues to depreciate, settles at 222.67 against US dollar

Pakistan’s rupee continued to depreciate against the US dollar, falling 0.12% in the inter-bank market on Thursday.

As per the State Bank of Pakistan (SBP), the rupee closed at 222.67 after a decline of Re0.26. In the last five trading sessions, the currency has lost Rs1.25 or 0.56% against the greenback.

On Wednesday, the rupee had continued to depreciate against the US dollar, and closed at 222.41 after a decrease of Re0.50 or 0.22%.

In a key development on Wednesday, the SBP assured the National Assembly’s Standing Committee on Finance that action would be taken against banks allegedly involved in overcharging the importers in the opening of LCs by the end of this month.

The committee was told that SBP held meetings with banks and warned them about the practice and advised them to rationalise the spreads being charged to the customers.

Moreover, Pakistan’s external debt and liabilities decreased to $126.914 billion at the end of September 2022 compared to $130.196 billion as on June 30, 2022, a decline of $3.282 billion.

Globally, the dollar rebounded on Thursday as strong US retail data cast doubt on the recent narrative that inflation is in retreat and US interest rates need not rise too much further.

US data overnight showed October retail sales rose 1.3%, compared with economist expectations for 1.0%, a healthy signal but one that dented hopes for a pause in rate increases.

The dollar index, which measures the currency against six major peers, gained 0.18% to 106.46.

Oil prices, a key indicator of currency parity, slipped on Thursday, pressured by easing concerns over geopolitical tensions and Chinese demand worries, although signs of tighter supply including lower US inventories lent support.

Inter-bank market rates for dollar on Thursday

BID Rs 222.75

OFFER Rs 223.75

Open-market movement

In the open market, the PKR lost 50 paisas for both buying and selling against USD, closing at 227.25 and 229.50, respectively.

Against Euro, the PKR lost 50 paisas for both buying and selling, closing at 242.50 and 244.50 respectively.

Against UAE Dirham, the PKR lost 20 paisas for both buying and selling, closing at 64.80 and 65.40, respectively.

Against Saudi Riyal, the PKR remained unchanged for both buying and selling, closing at 62.70 and 63.20, respectively.

Open-market rates for dollar on Thursday

BID Rs 227.25

OFFER Rs 229.50