Rupee continues to depreciate, settles at 224.37 against US dollar

Pakistan’s rupee registered a loss for the fourth successive session against the US dollar on Thursday, as the currency depreciated 0.09% in the inter-bank market.

As per the State Bank of Pakistan (SBP), the rupee closed at 224.37 after a decrease of Re0.21. The rupee has depreciated by 21.33% against the US dollar during the ongoing calendar year.

On Wednesday, the rupee had registered losses against the US dollar to settle at 224.16 after a decrease of Re0.05 or 0.02%.

In a key development, Prime Minister's Office (PMO) sought a report from the Finance Ministry on pending foreign exchange approvals from the State Bank of Pakistan (SBP), reported Business Recorder.

Pakistan's foreign exchange reserves have been depleting for months now, and fallen below $13 billion, according to latest data.

A low level of forex reserves has also put pressure on the currency.

Globally, the US dollar remained weak on Thursday after sliding against major peers overnight for the first time this week as investors fretted about the potential for recession in the United States.

While investors have been anticipating the Fed will soon slow its tightening pace, recent upbeat US employment, services and factory data have added to investor uncertainty over the policy outlook.

The US dollar index - which gauges the greenback versus six counterparts - ticked up 0.16% to 105.30 early in the Asian session, clawing back a bit of its 0.42% slide overnight, its first decline since Friday.

Oil prices, a key indicator of currency parity, rebounded on Thursday after four sessions of decline, boosted by hopes that easing anti-COVID measures in China will revive demand and by signs that some tankers carrying Russian oil have been delayed after a G7 price cap came into effect.

China on Wednesday announced the most sweeping changes to its resolute anti-COVID regime since the pandemic began, while at least 20 oil tankers faced delays in crossing to the Mediterranean from Russia’s Black Sea ports.

Inter-bank market rates for dollar on Thursday

BID Rs 224.40

OFFER Rs 225.40

Open-market movement

In the open market, the PKR gained 1 paisa for buying while remaining unchanged for selling against USD, closing at 229.70 and 232, respectively.

Against Euro, the PKR lost 50 paisas for both buying and selling, closing at 249.50 and 251.50 respectively.

Against UAE Dirham, the PKR lost 20 paisas for both buying and selling, closing at 65.50 and 66, respectively.

Against Saudi Riyal, the PKR lost 10 paisas for both buying and selling, closing at 63.30 and 63.80, respectively.

Open-market rates for dollar on Thursday

BID Rs 229.70

OFFER Rs 232