KARACHI: The rupee remained largely stable during the previous week, depreciating 0.34% against the US dollar in the inter-bank market as the State Bank of Pakistan (SBP) and Finance Minister Ishaq Dar moved to quell nerves over the country’s upcoming payment obligations.
The rupee lost value in four of the five sessions, but remained within the 223 level as restrictions imposed over import payments, opening of letters of credit, and foreign-currency carrying limits on travelers meant the currency stayed administratively under control.
At the same time, Pakistan’s current account deficit clocked in at $567 million during October, 56% higher month-on-month, while talks with the International Monetary Fund (IMF) remained stagnant. The lender said Pakistan’s timely finalisation of the flood recovery plan is essential to support the discussions, along with continuing financial support from multilateral and bilateral partners, suggesting that the ninth review may still take time to complete.
However, while the rupee has remained stable in the inter-bank market, its volatility has increased in the open and black markets with reports suggesting a higher premium being charged to buy dollars and other foreign currencies. Moreover, foreign exchange reserves held by the central bank decreased $134 million on a weekly basis, clocking in $7.83 billion as of November 18, data revealed during the previous week showed.
Open-market rates
In the open market, the PKR lost one rupee for buying and 1.05 rupees for selling against USD, closing at 228.75 and 231, respectively.
Against Euro, the PKR lost 4 rupees for both buying and selling, closing at 246.50 and 248.50, respectively.
Against UAE Dirham, the PKR lost 80 paisas for buying and 95 paisas for selling, closing at 65.70 and 66.35, respectively. Against Saudi Riyal, the PKR lost 90 paisas for buying and one rupee for selling, closing at 63.70 and 64.30, respectively.
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THE RUPEE
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Weekly Interbank market rates for dollar
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Bid Close Rs. 224.00
Offer Close Rs. 225.00
Bid Open Rs. 223.25
Offer Open Rs. 224.25
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Weekly Open market rates for dollar
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Bid Close Rs. 228.75
Offer Close Rs. 231.00
Bid Open Rs. 227.75
Offer Open Rs. 229.95
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Copyright Business Recorder, 2022
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