AVN 65.12 Decreased By ▼ -0.28 (-0.43%)
BAFL 29.50 No Change ▼ 0.00 (0%)
BOP 4.05 No Change ▼ 0.00 (0%)
CNERGY 3.54 Decreased By ▼ -0.06 (-1.67%)
DFML 11.71 Increased By ▲ 0.36 (3.17%)
DGKC 42.60 Decreased By ▼ -0.06 (-0.14%)
EPCL 45.86 Decreased By ▼ -0.91 (-1.95%)
FCCL 11.80 Decreased By ▼ -0.05 (-0.42%)
FFL 5.52 Decreased By ▼ -0.08 (-1.43%)
FLYNG 5.89 Decreased By ▼ -0.06 (-1.01%)
GGL 10.68 Decreased By ▼ -0.01 (-0.09%)
HUBC 66.91 Decreased By ▼ -0.21 (-0.31%)
HUMNL 5.45 Decreased By ▼ -0.07 (-1.27%)
KAPCO 24.12 Decreased By ▼ -0.03 (-0.12%)
KEL 2.06 Decreased By ▼ -0.02 (-0.96%)
LOTCHEM 25.15 Increased By ▲ 0.11 (0.44%)
MLCF 25.41 No Change ▼ 0.00 (0%)
NETSOL 74.22 Decreased By ▼ -0.98 (-1.3%)
OGDC 84.04 Decreased By ▼ -0.56 (-0.66%)
PAEL 10.60 Decreased By ▼ -0.10 (-0.93%)
PIBTL 3.71 Decreased By ▼ -0.21 (-5.36%)
PPL 62.60 Decreased By ▼ -1.00 (-1.57%)
PRL 12.46 Decreased By ▼ -0.18 (-1.42%)
SILK 0.86 Decreased By ▼ -0.01 (-1.15%)
SNGP 39.12 Decreased By ▼ -0.34 (-0.86%)
TELE 7.90 Decreased By ▼ -0.27 (-3.3%)
TPLP 14.32 Decreased By ▼ -0.22 (-1.51%)
TRG 107.11 Decreased By ▼ -1.04 (-0.96%)
UNITY 13.16 Decreased By ▼ -0.30 (-2.23%)
WTL 1.18 Decreased By ▼ -0.01 (-0.84%)
BR100 4,035 Decreased By -27.6 (-0.68%)
BR30 14,315 Decreased By -103.2 (-0.72%)
KSE100 39,880 Decreased By -202.5 (-0.51%)
KSE30 14,771 Decreased By -55.9 (-0.38%)
Markets

New low: rupee closes at 262.6 against US dollar after 2.7% fall in inter-bank market

  • This is the currency's 28th successive loss in the inter-bank market
  • Depreciation in just two sessions crosses 12%
Published January 27, 2023
Follow us

After its historic fall the previous day, Pakistan’s rupee continued to witness significant depreciation against the US dollar in the inter-bank market, falling 2.73% on Friday.

As per the State Bank of Pakistan (SBP), the rupee closed at 262.6 after a fall of Rs7.17 or 2.73%.

This takes combined depreciation in two sessions (Thursday and Friday) to 12.1%.

The rupee had earlier hit a level of 264 in intra-day trading.

The depreciation comes as Pakistan moves to convince the International Monetary Fund (IMF) that it has a ‘free floating’ exchange rate, ahead of the lender’s visit at the end of this month, which was also announced on Thursday.

Many analysts said the rupee was bound to see significant depreciation as part of the prior conditions to revive the IMF bailout programme.

On Thursday, Pakistan’s rupee witnessed historic depreciation against the US dollar, settling with a loss of 9.6% in a single session.

The IMF also announced its mission will visit Pakistan from January 31-February 9 to continue the discussions for the 9th review under the Extended Fund Facility (EFF).

This was confirmed by IMF Resident Representative Esther Perez Ruiz to Business Recorder on Thursday.

“At the request of the authorities, an in-person Fund mission is scheduled to visit Islamabad January 31st – February 9th to continue the discussions under the ninth EFF review,” she stated.

The IMF programme revival has been deemed crucial in the face of fast-depleting foreign exchange reserves held by the SBP that dropped a massive $923 million to a mere $3.7 billion, data released on Thursday showed. This is the lowest level of SBP-held reserves since February 2014.

Inter-bank market rates for dollar on Friday

BID Rs 263

OFFER Rs 265

Open-market movement

In the open market, the PKR lost 6 rupees for buying and 7 rupees for selling against USD, closing at 266 and 269, respectively.

Against Euro, the PKR lost 7.50 rupees for both buying and selling, closing at 284 and 286.50 respectively.

Against UAE Dirham, the PKR lost 90 paisas for buying and one rupee for selling, closing at 72.40 and 73, respectively.

Against Saudi Riyal, the PKR lost 80 paisas for buying and 90 paisas for selling, closing at 70.30 and 71, respectively.

Open-market rates for dollar on Friday

BID Rs 266

OFFER Rs 269

International movement

Globally, the US dollar dropped against the yen on Friday as traders bet a hawkish pivot from the Bank of Japan (BOJ) was still in the offing.

The dollar also sagged close to a nine-month low versus the euro, amid market expectations the European Central Bank next week will implement a rate hike twice as big as the Federal Reserve’s.

The dollar index - which measures the currency against six major peers, including the euro, yen and British pound - edged 0.04% lower to 101.70, putting it on course for a 0.28% decline this week.

Oil prices, a key indicator of currency parity, edged ahead for a second session on Friday, buoyed by stronger-than-expected US economic growth and hopes of a rapid recovery in Chinese demand as COVID-19 cases and deaths plunged from last month’s peak levels.

Comments

Comments are closed.

Salim Jan 27, 2023 10:46am
Why not suo moto action against Ishaq Dar? We all know how honest he is. Don't we?
thumb_up Recommended (0)
Mubashir Munir Jan 27, 2023 10:57am
Please change yourselves and change old policies bring talented people and give them responsibility change your selves as western people are governing thereselves.
thumb_up Recommended (0)
Muhammad Kashif Jan 27, 2023 01:31pm
Pakistan has no option but to follow the path of IMF. This devaluation of the PKR will close the door of black market created by the artificial valuation of the PKR. We are facing the situation of "between the devil and the deep sea."
thumb_up Recommended (0)

New low: rupee closes at 262.6 against US dollar after 2.7% fall in inter-bank market

Punjab polls delay: Elections have been held in Pakistan despite terrorism, says SC

Rupee dips against US dollar, closes at 283.92

KSE-100 down 202 points amid economic uncertainty

Remarks on judge: Islamabad court issues Imran’s non-bailable arrest warrant again

Experts weigh in as EU removes Pakistan from list of high-risk third countries

Maryam claims SC judges giving verdicts against PML-N at family’s whims

UAE says its keen to invest in Pakistan economy

President approves appointment of Justice Musarrat Hilali as chief justice of PHC

Russia announces deal to boost oil supplies to India

Putin says sanctions could have 'negative' impact on Russia