- Currency depreciates 0.01% in inter-bank market on Friday
Pakistan’s rupee registered a loss for the fifth successive session against the US dollar on Friday, as the currency marginally depreciated 0.01% in the inter-bank market.
As per the State Bank of Pakistan (SBP), the rupee closed at 224.40 after a decrease of Re0.03. The rupee has depreciated by 21.34% against the US dollar during the ongoing calendar year.
On Thursday, the rupee had registered losses against the US dollar for the fourth successive session to settle at 224.37 after a decrease of Re0.21 or 0.09%.
In a key development, SBP-held foreign exchange reserves decreased by $784 million to $6.715 billion last week, showed latest data released on Thursday. The current level is the lowest since January 2019.
According to the SBP, this decline is on account of payment of $1,000 million against maturing Pakistan International Sukuk and some other external debt repayments.
Some of the debt repayments were offset by inflows, mainly $500 million received from Asian Infrastructure Investment Bank (AIIB).
On Thursday, Governor State Bank of Pakistan (SBP) Jameel Ahmad also moved to pacify concerns over the country's debt repayment obligations, breaking down the list of loans and external financing requirements during an in-house podcast with the central bank chief spokesperson Abid Qamar.
He stressed that all upcoming obligations will be met on schedule, and the foreign exchange reserves' position would improve in the second half of the ongoing fiscal year.
"A lot of the inflows we were expecting to receive have moved to the second half of FY23. Now, the inflows will be higher than outflows, and the SBP reserves' position will improve in the second half of FY23," said Ahmad.
Globally, the dollar eased on Friday as worries over a slowdown in the United States mounted, with traders on guard ahead of a slew of central bank meetings next week, where the Federal Reserve takes centre stage.
The US dollar index fell 0.27% to 104.53, after slipping 0.3% overnight. It has fallen nearly 7% this quarter, putting it on track for the largest quarterly decline since 2010.
Oil prices, a key indicator of currency parity, were stable on Friday but both benchmarks were headed for a weekly loss on worries over weak economic outlooks in China, Europe and the United States weighing on oil demand.
Inter-bank market rates for dollar on Friday
BID Rs 224.50
OFFER Rs 225.50
In the open market, the PKR remained unchanged for both buying and selling against USD, closing at 229.70 and 232, respectively.
Against Euro, the PKR lost 1.50 rupees for both buying and selling, closing at 251 and 253 respectively.
Against UAE Dirham, the PKR lost 30 paisas for both buying and selling, closing at 65.80 and 66.30, respectively.
Against Saudi Riyal, the PKR lost 10 paisas for both buying and selling, closing at 63.40 and 63.90, respectively.
Open-market rates for dollar on Friday
BID Rs 229.70
OFFER Rs 232