KARACHI: The rupee endured more losses against the US dollar during the previous week as it closed 1.33% or Rs3.74 lower in the inter-bank market.
It was the third consecutive week that the local currency witnessed a fall, cumulatively down by Rs6.69 or 2.4%.
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, Pakistan and the International Monetary Fund (IMF) began crucial discussions on the first review of the $3 billion Stand-by-Arrangement (SBA) amid the government’s claim that all targets have already been met.
In a meeting with IMF mission, Caretaker Finance Minister Dr Shamshad Akhtar reaffirmed Pakistan’s commitment to working closely with the IMF to ensure the successful completion of the SBA and achieve the country’s economic objectives.
External financing needs may come under sharp focus during this review, as the budgeted $4.5 billion loans from foreign commercial banks and $1.5 billion through the issuance of Eurobonds for the current fiscal year have yet to materialise.
Meanwhile, the foreign exchange reserves held by the State Bank of Pakistan (SBP) slightly increased by $14 million on a weekly basis, clocking in at $7.5 billion as of October 27.
On the other hand, SBP’s Monetary Policy Committee (MPC), in line with the wider market consensus, kept the key policy rate unchanged at 22%. In the open market, the PKR lost 3.50 rupees for both buying and selling against USD, closing at 282.00 and 285.50, respectively.
Against Euro, the PKR lost 5.00 rupees for both buying and selling, closing at 299.00 and 302.00, respectively.
Against UAE Dirham, the PKR lost 1.00 rupee for both buying and selling, closing at 79.50 and 80.20, respectively. Against Saudi Riyal, the PKR lost 1.00 rupee for both buying and selling, closing at 75.80 and 76.50, 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. 284.30
Offer Close Rs. 284.50
Bid Open Rs. 280.55
Offer Open Rs. 280.75
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Weekly open-market rates for dollar
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Bid Close Rs. 282.00
Offer Close Rs. 285.00
Bid Open Rs. 278.50
Offer Open Rs. 281.50
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Copyright Business Recorder, 2023
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