20th straight loss: rupee depreciates against US dollar

Pakistani rupee’s downward trajectory against the US dollar continued for the 20th successive session as it depreciated 0.14% in the inter-bank market on Tuesday.

As per the State Bank of Pakistan (SBP), the rupee declined by Re0.32 to close at 228.66. During the ongoing fiscal year, the rupee has depreciated 10.47% against the greenback.

On Monday, the rupee had registered a loss for the 19th successive session against the US dollar to settle at 228.34 after a decrease of Re0.19 or 0.08%.

In a key development, Finance Minister Ishaq Dar said on Monday that exporters of textile products, leather goods, surgical instruments, carpets, and sports goods would be given complete facilitation on the import of raw material/ inputs to meet their export requirements.

The top priority of the government is to fully implement the Export Facilitation Scheme (EFS) of the Federal Board of Revenue (FBR) bringing all big exporters within the ambit of the scheme to allow duties and taxes-free inputs for goods to be exported.

Moreover, the Exchange Companies Association of Pakistan (ECAP) suggested introducing and setting the special exchange rate of the US Dollar against the Rupee for export-import bills and remittances.

Globally, the dollar drifted up from multi-month lows on Tuesday, while the yen was perched near seven-month highs as investors held their breath for a potential policy shift at the Bank of Japan.

The US dollar index bounced from a seven-month low of 101.77 made a day ago and held at 102.50. Sterling touched its highest since mid-December at $1.2288 before easing back to $1.2177 in Asia trade.

Oil prices, a key indicator of currency parity, were mixed on Tuesday after China posted its weakest annual economic growth in nearly half a century, with its late-2022 U-turn in COVID-19 policy underpinning hopes of a recovery in the country’s fuel demand this year.

Inter-bank market rates for dollar on Tuesday

BID Rs 228.65

OFFER Rs 229.65

Open-market movement

In the open market, the PKR remained unchanged for both buying and selling against USD, closing at 236.50 and 238.75, respectively.

Against Euro, the PKR remained unchanged for both buying and selling, closing at 269 and 271 respectively.

Against UAE Dirham, the PKR lost 10 paisas for buying and 20 paisas for selling, closing at 68.10 and 68.70, respectively.

Against Saudi Riyal, the PKR lost 10 paisas for both buying and selling, closing at 66 and 66.60, respectively.

Open-market rates for dollar on Tuesday

BID Rs 236.50

OFFER Rs 238.75