17th successive decline: rupee continues to depreciate against US dollar

Pakistan’s rupee registered a decline against the US dollar for the 17th successive session, depreciating 0.09% in the inter-bank market on Thursday.

As per the State Bank of Pakistan (SBP), the rupee declined by Re0.21 to close at 228.14. During the ongoing fiscal year, the rupee has depreciated 10.25% against the greenback.

On Wednesday, the rupee had registered a loss for the 16th successive session against the US dollar to settle at 227.93 after a decrease of Re0.05 or 0.02%.

In a key development on Wednesday, Federal Minister for Finance and Revenue Ishaq Dar “categorically” dismissed rumours suggesting that the government is considering “access to foreign exchange held with commercial banks.”

“It is categorically denied and clarified that there is no such move under consideration of the government,” said Dar in a series of tweets.

The statement came days after the finance minister had said Pakistan’s foreign exchange reserves stand at $10 billion and not $4 billion, as $6 billion held by commercial banks also belong to the country. The remarks sent shivers down the spine of depositors who felt there could be a repeat of 1998 when the government, also run by PML-N at the time, seized foreign currency funds held by commercial banks.

Internationally, the yen got a boost on Thursday on expectations that the Bank of Japan will review the side effects of its monetary easing, while the dollar paused its retreat and wobbled near a seven-month low against the euro ahead of US inflation data later in the day.

Sterling was little changed at $1.21505, while the US dollar index crept 0.02% higher to 103.14, though remained not far off its seven-month low of 102.93 hit earlier in the week.

Oil prices, a key indicator of currency parity, rose in early trade on Thursday, building on gains in the previous session as China’s demand outlook improves and concerns rise over the impact of sanctions on Russian supply.

Inter-bank market rates for dollar on Thursday

BID Rs 228.15

OFFER Rs 229.15

Open-market movement

In the open market, the PKR lost 50 paisas for both buying and selling against USD, closing at 236.25 and 238.50, respectively.

Against Euro, the PKR gained one rupee for buying and 50 paisas for selling, closing at 269 and 271.50 respectively.

Against UAE Dirham, the PKR gained 30 paisas for both buying and selling, closing at 68.40 and 68.90, respectively.

Against Saudi Riyal, the PKR gained 20 paisas for buying and 30 paisas for selling, closing at 66.50 and 67, respectively.

Open-market rates for dollar on Thursday

BID Rs 236.25

OFFER Rs 238.50