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Markets

Pakistan's rupee closes near 174 as depreciation continues

  • Falls another 49 paisas to end at 173.96 in inter-bank market
Published October 21, 2021

Pakistan's rupee continued to weaken, depreciating another 0.28% to close near 174 against the US dollar in the inter-bank market on Thursday.

As per the State Bank of Pakistan (SBP), the PKR closed at 173.96 against the USD, a day-on-day depreciation of 49 paisas or 0.28%. On Wednesday, the PKR had dropped to the-then record low of 173.47.

The PKR has lost 12.46% of its value against the greenback since its recent high in May. It has depreciated by 9.44% during the ongoing fiscal year, and 8.12% during the calendar year.

Against USD: Pakistan's rupee weakens further, closes at 173.47

The rapid depreciation within the space of a few months has raised concerns over inflation.

Overseas Pakistanis have benefitted from rupee depreciation: Dr Reza Baqir

However, SBP Governor Dr Reza Baqir looked to point out the positive, saying that PKR depreciation benefits overseas Pakistanis, who provide Pakistan with billions of dollars as remittances.

While talking to media persons in Manchester, the ex-IMF official said any economic policy benefits one section over the other.

"Rising dollar rates benefit some people and harm others. Overseas Pakistanis benefit because their family members receive more remittances. We should not forget those who benefit,” the SBP chief official had said.

Inter-bank market rates for dollar on Thursday

BID Rs 173.80

OFFER Rs 173.95

Open-market movement

In the open market, the PKR remained unchanged for buying while gaining 10 paisas for selling against USD, closing at 173.50 and 174.20, respectively.

Against Euro, the PKR lost 60 paisas for buying and 12 paisas for selling, closing at 200.60 and 202.12, respectively.

Against UAE Dirham, the PKR gained 60 paisas for buying and 65 paisas for selling, closing at 49.40 and 49.85, respectively.

Against Saudi Riyal, the PKR gained 20 paisas for buying and 15 paisas for selling, closing at 45.70 and 46.15, respectively.

Open-market rates for dollar on Thursday

BID Rs 173.50

OFFER Rs 174.20

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