25th consecutive decline: rupee depreciates against US dollar

Pakistani rupee maintained its downward trend against the US dollar for the 25th consecutive session, as it depreciated 0.11% in the inter-bank market on Tuesday.

As per the State Bank of Pakistan (SBP), the rupee declined by Re0.25 to close at 230.40. During the ongoing fiscal year, the rupee has depreciated 11.23% against the greenback.

On Monday, the rupee had registered a loss for the 24th successive session against the US dollar to settle at 230.15 after a decrease of Re0.48 or 0.21%.

In line with market expectations, the Monetary Policy Committee (MPC) of the SBP on Monday announced an interest rate hike of 100 basis points, taking it to 17%. This is the highest level of the key policy rate since October 1997.

The SBP also said it has completed its investigation over alleged exchange-rate manipulation by commercial banks in the country, and will put forth the decision in a matter of “days” after consultations on whether the apparent penalty is to be pursued from a regulatory or fiscal standpoint.

Moreover, the central bank also suspended, with immediate effect, the authorisation of eleven outlets of eight Exchange Companies, for seven to fifteen days due to violations of regulatory instructions. The SBP said all eleven outlets have been restricted from undertaking any kind of business activity during the suspension period.

Globally, the dollar was on the back foot on Tuesday, hovering near a nine-month low to the euro and giving back recent gains against the yen, as traders continued to gauge the risks of a US recession and the path for Federal Reserve policy.

The US dollar index - which measures the greenback against a basket of six peers, including the euro and yen - slipped 0.09% to 101.92, heading back towards the 7-1/2-month low of 101.51 reached on Wednesday.

Oil prices, a key indicator of currency parity, edged higher in Asian trade on Tuesday amid hopes of a fuel demand recovery from top importer China, although concerns about a slowdown in the US economy capped gains.

Inter-bank market rates for dollar on Tuesday

BID Rs 230.40

OFFER Rs 231.40

Open-market movement

In the open market, the PKR lost 25 paisas for both buying and selling against USD, closing at 238.50 and 240.75, respectively.

Against Euro, the PKR lost 1.50 rupees for both buying and selling, closing at 272.50 and 275 respectively.

Against UAE Dirham, the PKR lost 50 paisas for both buying and selling, closing at 70 and 70.50, respectively.

Against Saudi Riyal, the PKR lost 10 paisas for both buying and selling, closing at 67.10 and 67.60, respectively.

Open-market rates for dollar on Tuesday

BID Rs 238.50

OFFER Rs 240.75