KARACHI: The rupee declined against the US dollar for another week as it closed 0.63% or Rs1.77 lower in the inter-bank market.
The local currency started the week at 278.80 level, but closed on Friday at 280.57.
In last two weeks, the rupee has weakened against the dollar by 1.06% or Rs2.95. Earlier, the local currency maintained a positive close for 28 successive sessions - one of the longest appreciation runs as it cumulatively gained 10.93% since hitting a record low of 307.1 in the inter-bank market on September 5.
The unprecedented increase had largely come on the back of a crackdown against smuggling and controls on exchange companies.
In a related development, the Ministry of Finance asked all ministries/divisions to be ready for the first review of the International Monetary Fund’s (IMF) Standby Arrangement (SBA) to ensure successful completion of the review. A favourable review by the Washington-based lender will pave way for release of the second tranche and funding from other multilateral partners.
Meanwhile, the Economic Coordination Committee (ECC) of the Cabinet approved an increase in gas tariff.
The State Bank of Pakistan (SBP) said it was expecting improvement in the inflows of remittances to Pakistan in the future amid a significant increase in labour migration.
It may be noted that the central bank imposed penalties worth Rs83.2 million on four banks during the quarter ending September 30, 2023, for non-compliance with legal or regulatory requirements.
In the open market, the PKR lost 1.00 rupee for both buying and selling against USD, closing at 278.50 and 281.50, respectively.
Against Euro, the PKR lost 1.00 rupee for both buying and selling, closing at 294.00 and 297.00, respectively.
Against UAE Dirham, the PKR lost 1.50 rupee for buying and 1.45 rupee for selling, closing at 78.50 and 79.20, respectively. Against Saudi Riyal, the PKR lost 30 paisa for both buying and selling, closing at 74.80 and 75.50, 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. 280.55
Offer Close Rs. 280.75
Bid Open Rs. 278.80
Offer Open Rs. 279.00
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Weekly open-market rates for dollar
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Bid Close Rs. 278.50
Offer Close Rs. 281.50
Bid Open Rs. 277.50
Offer Open Rs. 280.50
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Copyright Business Recorder, 2023
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