KARACHI: The rupee fell 0.73% against the US dollar during the previous week, but it was its reported shortage in the open market and the long-march announcement by Pakistan Tehreek-e-Insaf (PTI) Chairman Imran Khan that caused a bit of stir among official circles.
After back-to-back gains on Monday and Tuesday, the rupee endured three successive falls to close at 222.47 against the US dollar in the inter-bank market.
Earlier, Business Recorder reported that the open market witnessed a massive shortage of USD with consumers left running from pillar to post to meet their needs.
The shortage also resulted in a widening spread between rates offered in the inter-bank and open markets.
During the previous week, Pakistan reported having received $1.5 billion from the Asian Development Bank (ADB), a loan provided under ADB’s Building Resilience with Active Countercyclical Expenditures (BRACE), and to be utilised to fund the government’s $2.3 billion countercyclical development expenditure programme designed to cushion the impacts of external shocks, including the Russian invasion of Ukraine.
The inflow would be reflected in State Bank of Pakistan’s foreign exchange reserves this week.
However, the development was overshadowed by Imran’s long march announcement with the markets coming under renewed political pressure over the PTI chief’s insistence on early elections.
A rare public appearance by the intelligence chief did little to calm markets on Friday.
On Saturday, Finance Minister Ishaq Dar was reported have met with banks and exchange companies to discuss the economic situation and issues related to the exchange rate, warning of strict action against those institutions found involved in unlawful practices.
He strictly asked banks and ECs to avoid manipulation of the dollar. However, despite Dar’s move, the rupee is likely to take direction from political developments during the coming days.
Open-market rates
In the open market, the PKR lost 2.55 rupees for buying and 2.60 rupees for selling against USD, closing at 225.25 and 227.50, respectively.
Against Euro, the PKR lost 7 rupees for buying and 7.05 rupees for selling, closing at 223.50 and 225.70, respectively.
Against UAE Dirham, the PKR lost 70 paisas for buying and 60 paisas for selling, closing at 64.70 and 65.20, respectively.
Against Saudi Riyal, the PKR lost 70 paisas for both buying and selling closing, at 59.80 and 60.40, respectively.
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THE RUPEE
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Weekly Interbank market rates for dollar
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Bid Close Rs. 222.50
Offer Close Rs. 223.50
Bid Open Rs. 220.90
Offer Open Rs. 221.90
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Weekly Open market rates for dollar
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Bid Close Rs. 225.25
Offer Close Rs. 227.50
Bid Open Rs. 222.70
Offer Open Rs. 224.90
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Copyright Business Recorder, 2022