KARACHI: The rupee saw depreciation of 0.52% during the previous week, closing at 288.49 against the US dollar in the inter-bank market.
The currency fell in four out of the five sessions, as effects of the International Monetary Fund (IMF) programme ended to officially make way for economic fundamentals.
Additionally, inflows seemed to have dried up with foreign exchange reserves held by the State Bank of Pakistan (SBP) falling $110 million on a weekly basis to stand at $8.04 billion as of August 4, data released in the previous week showed.
This was the third successive week-on-week decline.
Reports suggest restrictions on letters of credit have started to ease, but the development is also likely to cause pressure on the rupee. More importantly, rising oil prices in the international market will also affect the exchange rate as Pakistan depends on a significant amount of import of the commodity.
The coming week will likely see pressure on the rupee to sustain with the caretaker setup letting market forces determine the value. The open-market, reports suggest, has already started to incorporate a greater premium on the US dollar.
Open-market rates
In the open market, the PKR lost 4.00 rupees for both buying and selling against USD, closing at 293.00 and 296.00, respectively.
Against Euro, the PKR lost 4.00 rupees for both buying and selling, closing at 321.00 and 324.00, respectively.
Against UAE Dirham, the PKR lost 70 paisa for both buying and selling, closing at 81.70 and 82.50, respectively.
Against Saudi Riyal, the PKR lost 1.20 rupee for buying and 1.25 rupee for selling, closing at 78.50 and 79.25, respectively.
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THE RUPEE
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Weekly inter-bank market rates for dollar
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Bid Close Rs. 288.45
Offer Close Rs. 288.65
Bid Open Rs. 286.90
Offer Open Rs. 287.10
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Weekly open-market rates for dollar
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Bid Close Rs. 293.00
Offer Close Rs. 296.00
Bid Open Rs. 289.00
Offer Open Rs. 292.00
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Copyright Business Recorder, 2023
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