KARACHI: The rupee lost value, albeit marginally, in all five sessions during the previous week to close at 223.17 against the US dollar in the inter-bank market, amid reports that talks with the International Monetary Fund (IMF) have been further delayed as the lender linked arrival of its mission in Islamabad with finalisation of macroeconomic framework with necessary adjustments.
The rupee, which remained largely stable in recent days, saw somewhat greater pressure towards the end of the week, with investors also concerned over rising political noise and falling foreign exchange reserves. The rupee’s total fall clocked in at nearly 0.7% against the US dollar across the five sessions, but still a far cry from its volatile ride in the previous months.
Meanwhile, delay in the IMF’s ninth review has also been a reason behind Pakistan’s perceived risk of default, measured by the 5-year credit default swap (CDS), hitting 75.5% last week, according to analysts. However, Finance Minister Ishaq Dar on Saturday moved to calm nerves by reiterating that Pakistan would meet all payment obligations.
During the week, the State Bank of Pakistan (SBP) was also reported to have assured the National Assembly’s Standing Committee on Finance that action would be taken against banks allegedly involved in overcharging importers in the opening of LCs by the end of this month.
Moving forward, analysts believe the rupee will take cue from Pakistan’s charged-up political atmosphere and progress on talks with the IMF.
Open-market rates
In the open market, the PKR lost 2.25 rupees for buying and 2.20 rupees for selling against USD, closing at 227.75 and 229.95, respectively.
Against Euro, the PKR lost 2.50 rupees for both buying and selling, closing at 242.50 and 244.50, respectively.
Against UAE Dirham, the PKR lost 40 paisas for both buying and selling, closing at 64.90 and 65.40, respectively.
Against Saudi Riyal, the PKR lost 30 paisas for both buying and selling, closing at 62.80 and 63.30, respectively.
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THE RUPEE
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Weekly Interbank market rates for dollar
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Bid Close Rs. 223.25
Offer Close Rs. 224.25
Bid Open Rs. 221.65
Offer Open Rs. 222.65
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Weekly Open market rates for dollar
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Bid Close Rs. 227.75
Offer Close Rs. 229.95
Bid Open Rs. 225.50
Offer Open Rs. 227.75
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Copyright Business Recorder, 2022
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