Rupee unchanged against US dollar

Pakistan's rupee remained unchanged against the US dollar to close near the 182 level in the inter-bank market on Thursday, ending a losing streak that saw it lose value in 7 successive sessions.

As per the State Bank of Pakistan (SBP), the PKR remained at 181.73, its record-low against the greenback.

The rupee has lost 16.21% since its most-recent high achieved in May last year. On a fiscal year to date (FYTD) basis, the local currency has depreciated 13.31%.

Crude oil prices, a major determinant of currency parity, declined in volatile trading on Thursday as investors assessed the potential for new supply in the tight markets, amid prospects of a new Iran deal.

Brent futures were down 58 cents, or 0.48%, at $121.02 a barrel and U.S. West Texas Intermediate futures fell 96 cents, or 0.84%, to $113.97 a barrel. Both contracts rose $2 and $1, respectively, in early trade.

Another day, another record low for Pakistan rupee against US dollar

Samiullah Tariq, Head of Research at Pak Kuwait Investment Company Limited, blamed the ongoing local currency decline on Pakistan's export performance in the last 13 years.

“We should remember that inflation and the PKR depreciation we are witnessing today are due to stagnant-to-declining exports during the past decade,” said Tariq in a tweet post, while sharing Pakistan exports' data.

He said that although this has now changed, “the huge imbalance which was created over the decade would take some time to fade away.”

In July-February, Pakistan's exports posted a year-on-year growth of 25.9% to reach $20.54 billion. In February, exports grew 36% to $2.8 billion from $2.06 billion recorded in the same month last year. On a month-on-month basis, exports increased by 7.42% in February.

The expert added that the market-determined exchange rate, which was adopted by the central bank back in 2019, is essential to restore competitiveness for exports.

Inter-bank market rates for dollar on Thursday

BID Rs 181.60

OFFER Rs 181.70

Open-market movement

In the open market, the PKR remained unchanged for both buying and selling against USD, closing at 182 and 183, respectively.

Against Euro, the PKR lost 50 paisas for both buying and selling, closing at 199.10 and 201, respectively.

Against UAE Dirham, the PKR lost 5 paisas for both buying and selling, closing at 49.86 and 50.35, respectively.

Against Saudi Riyal, the PKR remained unchanged for both buying and selling, closing at 48.30 and 48.75, respectively.

Open-market rates for dollar on Thursday

BID Rs 182

OFFER Rs 183