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Markets

Record low in inter-bank market: rupee settles at 299.01 against US dollar

  • Currency depreciates 0.63% on Tuesday
  • This is its weakest closing since it hit 298.93 on May 11 earlier this year
Published August 22, 2023

The Pakistani rupee fell to a new record low against the US dollar, depreciating 0.63% in the inter-bank market on Tuesday.

At close, the rupee settled at 299.01, a decrease of Rs1.88, as per the State Bank of Pakistan (SBP).

This is the lowest level for the rupee against the greenback. On May 11, 2023, it closed at the then-record low of 298.93.

On Monday, the rupee remained under pressure against the US dollar, as it settled at 297.13.

The rupee has come under pressure recently as a widening current account deficit amid ease in opening of letters of credit takes toll on the currency. Additionally, lack of further foreign exchange inflows have put pressure on the dollar position in the local market.

Fahad Rauf, Head of Research at Ismail Iqbal Securities Limited, told Business Recorder on Tuesday that the rise in import payments, after the International Monetary Fund (IMF) demanded to lift import restrictions, is leading to increase in demand for the greenback.

“This was reflected in the $0.8 billion current account deficit recorded in July,” he said.

“Moreover, there is also a need to narrow down the gap in the inter-bank and open markets, which has risen in recent days,” he added.

Internationally, the US dollar held close to a 10-week peak versus a basket of major peers, and near its highest since November against the yen, as Treasury yields rose made fresh post-financial crisis highs on Tuesday amid speculation US rates will be stay high for longer.

The US dollar index - which measures the currency against six developed-market counterparts, including the yen and euro - slipped 0.1 to 103.24, but remained not far from Friday’s high of 103.68, a level not seen since June 12.

Oil prices, a key indicator of currency parity, were little changed on Tuesday as investors stay sour on China’s economic prospects and demand from the world’s top crude importer, limiting the impact of supply cuts.

Inter-bank market rates for dollar on Tuesday

BID Rs 298.90

OFFER Rs 299.10

Open-market movement

In the open market, the PKR lost 2.00 rupees for both buying and selling against USD, closing at 303.00 and 306.00, respectively.

Against Euro, the PKR lost 6.00 rupees for buying and 7.00 rupees for selling, closing at 335.00 and 339.00, respectively.

Against UAE Dirham, the PKR lost 1.00 rupee for both buying and selling, closing at 84.20 and 85.00, respectively.

Against Saudi Riyal, the PKR lost 1.80 rupee for both buying and selling, closing at 82.50 and 83.30, respectively.

Open-market rates for dollar on Tuesday

BID Rs 303.00

OFFER Rs 306.00

Comments

Comments are closed.

IMTIAZ CASSUM AGBOATWALA Aug 22, 2023 01:14pm
I wish the finance minister would take a look at the falling rupee and correct its downfall .
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Shahid Khan Aug 22, 2023 01:28pm
No hope for our beloved country now. We are doomed
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Haider Aug 22, 2023 01:35pm
With limited powers if any and steep inflation, falling rupee, highest energy and fuel prices and ofcurse the IMF's SBA strings, i am afraid there isnt much she can do!
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Kashif ALI Aug 22, 2023 01:46pm
@IMTIAZ CASSUM AGBOATWALA, Nothing is wrong in the fall of rupee according to fundamentals of economics. The wish of public at large can neither be entertained nor taken seriously. Rupees is finding its rightful balance thanks to our economic mess and incompetency.
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faisal Aug 22, 2023 02:03pm
Open market around 313. I think it will be managed around 308-309 for a few months in interbank.
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Dilawez Shehnaz Aug 22, 2023 03:58pm
No one can stop growth of Pakistan except the foolish mindset. What a fall for our country. Lots of prayers
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Dilawez Shehnaz Aug 22, 2023 03:58pm
No one can stop growth of Pakistan except the foolish mindset. What a fall for our country. Lots of prayers
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Dilawez Shehnaz Aug 22, 2023 03:59pm
No one can stop growth of Pakistan except the foolish mindset. What a fall for our country. Lots of prayers
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Dilawez Shehnaz Aug 22, 2023 04:09pm
No one can stop growth of Pakistan except the foolish mindset. What a fall for our country. Lots of prayers
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AmirSh Aug 22, 2023 04:58pm
350 in sight before the year is over? Quite possible. Transparent, fair election and political stability are the corrective measures to get out of this mess.
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Tulukan Mairandi Aug 22, 2023 05:06pm
The early signs of hyperinflation and balkanization
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Abbas Aug 22, 2023 05:30pm
@Dilawez Shehnaz, Could not agree more.
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Asam Khan Aug 22, 2023 06:33pm
The average rate set by IMF in their report is Rs 305, this is just an average, dollar will hit close to Rs320 to Rs 325 before stabilizing and back to Rs 305. Since both exports and remittances have gone down, plus electrical power prices + political situation, the crisis will only worsen. Everyone needs an NRO and the establishment needs to leave politics.
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HashBrown® Aug 22, 2023 07:05pm
@Tulukan Mairandi, "The early signs of hyperinflation and balkanization" Where were you in 1947 when your own country was balkanised?
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Shebaz Aug 22, 2023 07:40pm
Everyone in Pakistan needs to step back and think before it gets too late, we are stuck in a bad cycle, the only way out is joint effort
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Hilarious Aug 22, 2023 07:55pm
@IMTIAZ CASSUM AGBOATWALA, not at all possible in the short to medium term, hard structural reforms are needed and if that happens maybe a good outlook for the long term but until that happens doesn’t matter if the whole country takes a “look” at it, no one is willing to do the work that is necessary. Also there is also no return from the points crossed to date.
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Ali AYC Aug 22, 2023 09:16pm
Uffff
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kaleem ullah Aug 23, 2023 07:12pm
@IMTIAZ CASSUM AGBOATWALA, impossible they are busy in making cases against PTI workers
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kaleem ullah Aug 23, 2023 07:13pm
@Haider,
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