KARACHI: Barring one session, the rupee depreciated throughout the previous week, ending with a cumulative fall of 5.05% to close at its all-time low of 276.58 against the US dollar in the inter-bank market.
Low level of foreign exchange reserves, which fell another $592 million to a mere $3.09 billion, followed by remarks made only in passing by Prime Minister Shehbaz Sharif in a security-related meeting in Peshawar added to investor concerns. PM Shehbaz said the International Monetary Fund (IMF) was giving Pakistan a “tough” time in restarting the bailout programme.
Additionally, Finance Minister Ishaq Dar gave his go-ahead to a proposal reportedly by charity organisations to help Pakistan raise as much as $2 billion, signalling further stress on Islamabad’s ability to secure much-needed dollar inflows.
Meanwhile, talks with the IMF continued amid reports that the Washington-based lender was insisting on reforms and prior conditions over several key areas including taxation, power sector, and energy prices.
Analysts believe the rupee is likely to stay under pressure until clarity is achieved on the IMF programme. Similarly, depleting reserves, at less than one month of import cover, will continue to play on the minds of the currency market.
Open-market rates
In the open market, the PKR lost 14 rupees for both buying and selling against USD, closing at 280 and 283, respectively.
Against Euro, the PKR lost 10 rupees for both buying and selling, closing at 294 and 296.50, respectively.
Against UAE Dirham, the PKR lost 3.10 rupees for buying and 3.20 rupees for selling, closing at 75.50 and 76.20, respectively.
Against Saudi Riyal, the PKR lost 3 rupees for both buying and selling, closing at 73.30 and 74, 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. 277.00
Offer Close Rs. 279.00
Bid Open Rs. 263.00
Offer Open Rs. 265.00
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Weekly open-market rates for dollar
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Bid Close Rs. 280.00
Offer Close Rs. 283.00
Bid Open Rs. 266.00
Offer Open Rs. 269.00
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Copyright Business Recorder, 2023