Rupee's decline continues, hits new low against dollar

Pakistan's rupee continued to fall against the US dollar, ending at a fresh all-time low of 170.48 in the inter-bank market on Wednesday.

As per the State Bank of Pakistan (SBP), the rupee declined another 51 paisas or 0.3% day-on-day, for its first closing over the 170 level. This is the sixth successive time the rupee has fallen against the dollar in the inter-bank market.

Since its recent high in May, the PKR has depreciated nearly 10.7% against the greenback. Its fall in the current fiscal year to date now stands at 7.6%, and comes in tandem with the widening current account deficit.

Pressure on the currency has also increased in recent weeks owing to the volatile situation in Afghanistan.

In a bid to control the import bill and arrest the rupee's decline, Pakistan's central bank has launched a series of measures including mandating banks to share a five-day schedule of upcoming import payments, revising it upwards from the earlier two-day directive, and directing them to seek permission for imports that are valued at $500,000 per transaction, cutting in half the original payment ceiling of $1 million.

However, analysts believe the measures have yet to make an impact.

A new low for Pakistan's rupee

Inter-bank market rates for dollar on Wednesday

BID Rs 170.55

OFFER Rs 170.65

Open-market movement

In the open market, the rupee remained unchanged for buying while losing 70 paisas for selling against the USD over Tuesday's rates, closing at 171.50 and 172.50, respectively, creating a spread of one rupee.

Against the Euro, the PKR remained unchanged for both buying and selling, closing at 199.50 and 201, respectively.

Against the UAE Dirham, the PKR lost 40 paisas for buying and 30 paisas for selling, closing at 47.90 and 48.10, respectively.

Against Saudi Riyal, the PKR lost 15 paisas for both buying and selling, closing at 45.65 and 45.85, respectively.

Open market rates for dollar on Wednesday

BID Rs 171.50

OFFER Rs 172.50