KARACHI: The rupee depreciated a marginal 0.21% against the US dollar in the previous week, as a slightly higher level of foreign exchange reserves kept the downside pressure at bay even without revival of the International Monetary Fund (IMF) programme.
The rupee closed at 283.79 against the US dollar in the inter-bank market on Friday as the loans from Chinese institutions lent support to critical levels of foreign exchange reserves. Even so, however, reserves held by the State Bank of Pakistan (SBP) remain at less than one month of import cover, underscoring the need for revival of the IMF programme.
The bailout is currently stalled at the ninth review with the IMF seeking commitments from ‘friendly’ nations to revive its Extended Fund Facility to Pakistan. While Finance Minister Ishaq Dar has reiterated several times that the programme remains on track – emboldened by having completed domestic economic measures – a staff-level agreement has remained elusive especially after Prime Minister Shehbaz Sharif announced a fuel relief package, which the IMF said it was not consulted over.
Experts believe the currency will likely remain under pressure, especially since a cut in oil production could give a boost to the commodity’s prices and put the current account of countries like Pakistan under pressure.
Open-market rates
In the open market, the PKR lost 1 rupee for both buying and selling against USD, closing at 284 and 287, respectively.
Against Euro, the PKR lost 6 rupees for both buying and selling, closing at 308 and 311, respectively.
Against UAE Dirham, the PKR gained 10 paisa for both buying and selling, closing at 77.10 and 77.80, respectively.
Against Saudi Riyal, the PKR lost 70 paisa for buying and 60 paisa for selling, closing at 75.70 and 76.30, 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. 283.75
Offer Close Rs. 286.25
Bid Open Rs. 283.20
Offer Open Rs. 285.50
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Weekly open-market rates for dollar
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Bid Close Rs. 284.00
Offer Close Rs. 287.00
Bid Open Rs. 283.00
Offer Open Rs. 286.00
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Copyright Business Recorder, 2023
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