21st successive fall: rupee depreciates against US dollar
- Currency loses Re0.25 to close at 228.91 in the inter-bank market
Pakistani rupee’s downward spiral against the US dollar continued for the 21st consecutive session, as it depreciated 0.11% in the inter-bank market on Wednesday.
As per the State Bank of Pakistan (SBP), the rupee declined by Re0.25 to close at 228.91. During the ongoing fiscal year, the rupee has depreciated 10.58% against the greenback.
On Tuesday, the rupee had registered a loss for the 20th successive session against the US dollar to settle at 228.66 after a decrease of Re0.32 or 0.14%.
Business Recorder reported that the government is considering new tax-raising measures through the Presidential Ordinance that may include an increase in the rates of withholding taxes, more indirect taxation, three percent flood levy on imports, and tax on banks’ foreign exchange income. The move comes as Pakistan mobilises revenue in an effort to revive the stalled International Monetary Fund (IMF) programme.
Internationally, China’s yuan slipped to a one-week low against a broadly stronger dollar on Wednesday, while seasonal demand for the greenback ahead of the Lunar New Year holidays continued to weigh on the Chinese currency.
In the global market the dollar gained some support from a weakening Japanese yen after the Bank of Japan maintained ultra-low interest rates, disappointing some of the investors who had hoped the central bank would tweak its yield curve control policy further.
By midday, the global dollar index rose to 102.697 from the previous close of 102.39.
Oil prices, a key indicator of currency parity, rose on Wednesday, extending the previous session’s gains, driven by optimism that the lifting of China’s strict COVID-19 curbs will lead to a recovery in fuel demand in the world’s top oil importer.
Inter-bank market rates for dollar on Wednesday
BID Rs 228.90
OFFER Rs 229.90
Open-market movement
In the open market, the PKR lost 25 paisas for both buying and selling against USD, closing at 236.75 and 239, respectively.
Against Euro, the PKR remained unchanged for buying while losing 50 paisas for selling, closing at 269 and 271.50 respectively.
Against UAE Dirham, the PKR lost 30 paisas for both buying and selling, closing at 68.40 and 69, respectively.
Against Saudi Riyal, the PKR lost 20 paisas for buying and 10 paisas for selling, closing at 66.20 and 66.70, respectively.
Open-market rates for dollar on Wednesday
BID Rs 236.75
OFFER Rs 239
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