Rupee closes at new historic low against US dollar in inter-bank market

The rupee maintained its downward trajectory for the sixth successive session against the US dollar, closing at a fresh historic low of 228.37 in the inter-bank market on Friday as political uncertainty and fall in foreign exchange reserves took a toll on the currency.

As per the State Bank of Pakistan (SBP), the rupee settled at 228.37, a dip of Rs1.56 or 0.68% against the greenback.

The rupee has now depreciated over 8% since Thursday last week.

Rupee closes near 227 as relentless fall continues

The decline in currency comes amid louder political noise ahead of a crucial Punjab Assembly session that was scheduled to elect the next chief minister of the country’s largest province.

“Sanity in Punjab Assembly is not only crucial for political but rupee stability as well,” tweeted Abid Qaiyum Suleri, Executive Director at the Sustainable Development Policy Institute (SPDI), ahead of the session.

Meanwhile, Finance Minister Miftah Ismail expressed hope that demand for the US dollar would decrease in the next few days following reduced imports, and the situation in terms of the exchange rate would reverse.

The finance minister said what has happened during the last three days was primarily because of political turmoil.

Market analysts have, however, warned authorities over the currency situation and its impact on the overall economy.

In a video message, Zafar Paracha, General Secretary at the Exchange Companies Association (ECAP), said the political situation needed to be resolved sooner than later to end uncertainty prevalent in the markets.

Inter-bank market rates for dollar on Friday

BID Rs 230

OFFER Rs 232

Open-market movement

In the open market, the PKR lost 2 rupees for both buying and selling against USD, closing at 228 and 230, respectively.

Against Euro, the PKR lost 2 rupees for both buying and selling, closing at 229 and 231 respectively.

Against UAE Dirham, the PKR lost 50 paisas for buying and 60 paisas for selling, closing at 61 and 61.60, respectively.

Against Saudi Riyal, the PKR lost 80 paisas for buying and 70 paisas for selling, closing at 59.50 and 60, respectively.

Open-market rates for dollar on Friday

BID Rs 228

OFFER Rs 230