14th successive loss: rupee falls yet again against US dollar

Pakistan’s rupee registered a marginal loss against the US dollar for the 14th consecutive session, depreciating 0.12% in the inter-bank market on Monday.

As per the State Bank of Pakistan (SBP), the rupee declined by Re0.27 to close at 227.41. During the ongoing fiscal year, the rupee has depreciated 9.93% against the greenback.

During the previous week, the rupee depreciated 0.31% to settle at 227.14 against the US dollar in the inter-bank market, according to the SBP, but its widening gap with open-market exchange rates raised questions on the actual value of the currency.

Administrative controls and import curbs, analysts say, will likely keep the rupee relatively stable in the inter-bank market. Still, the measure is unsustainable, especially in the face of fast-depleting foreign currency reserves.

Meanwhile, an International Monetary Fund (IMF) delegation is set to meet Finance Minister Ishaq Dar on the sidelines of the Geneva conference on Monday, co-hosted by PM Shehbaz Sharif and UN Secretary General Antonio Guterres, with the ninth review of the Extended Fund Facility likely to dominate the agenda.

Globally, the US dollar was on the back foot on Monday as China’s re-opening of its borders, and increasing hopes of the Federal Reserve slowing the pace of its interest rate hikes boosted risk sentiment.

US data showed a jump in the workforce and easing wage growth, while there were further signs of an economy slowing down, with the services industry activity contracting for the first time in more than two and a half years in December.

The dollar index, which measures the US dollar against six major currencies, fell 0.145% to 103.570 on Monday, after sliding 1.15% on Friday as investors moved to riskier assets.

Oil prices, a key indicator of currency parity, prices climbed on Monday as the borders reopened in China, the world’s top crude importer, boosting the outlook for fuel demand growth and offsetting global recession concerns.

Inter-bank market rates for dollar on Monday

BID Rs 227.40

OFFER Rs 228.40

Open-market movement

In the open market, the PKR lost 25 paisas for both buying and selling against USD, closing at 234.50 and 236.75, respectively.

Against Euro, the PKR lost 2 rupees for buying and 3 rupees for selling, closing at 267.50 and 270 respectively.

Against UAE Dirham, the PKR lost 30 paisas for both buying and selling, closing at 68.80 and 69.30, respectively.

Against Saudi Riyal, the PKR lost 20 paisas for both buying and selling, closing at 66.80 and 67.30, respectively.

Open-market rates for dollar on Monday

BID Rs 234.50

OFFER Rs 236.75