Pakistan's rupee fell marginally against the US dollar, depreciating by four paisas to close at its weakest level in the inter-bank market on Monday.

As per the State Bank of Pakistan (SBP), the PKR closed at 178.17 against the USD after a day-on-day depreciation of four paisas or 0.02%. On Friday, PKR had closed at 178.13 against the USD.

Cumulatively, the rupee has depreciated over 11% CYTD and 13% on a FYTD basis against the US dollar.

Against USD: Pakistan's rupee remains largely stable

The rupee has remained volatile since May this year as a higher import bill contributes to pressure on the currency. Uncertainty over the International Monetary Fund (IMF) programme, and a widening current account deficit has been piling up on the rupee, contributing to inflation as well.

“Pressure will remain on the exchange rate till a settlement with the IMF is reached, and funds are received," Saad Khan, Head of Equities at IGI Securities, told Business Recorder.

The sixth review of the Extended Fund Facility (EFF) would be presented to the IMF board on January 12. The approval could see the release of over $1 billion, and would also bring much-needed respite to the economy that faces a ballooning current account deficit, which stood at $1.9 billion in the month of November alone on account of a higher import bill.

Sixth review to be presented to IMF board on Jan 12: Pakistan's finance ministry

Furthermore, the market is also waiting for the government to introduce the amended Finance, and State Bank of Pakistan (SBP) autonomy bills in Parliament for approval on Tuesday.

Meanwhile, Topline Securities, in its latest report, said that amid 11% depreciation of PKR, the holders of USD made decent returns in 2021 while holders of Naya Pakistan USD Certificate (Roshan Digital) also made 18% return in PKR terms.

Gold also posted gains of 10% in PKR in 2021 as investors continued to see the precious metal as a safe-haven asset.

Inter-bank market rates for dollar on Monday

BID Rs 178.17

OFFER Rs 178.27

Open-market movement

In the open market, the PKR lost 1.90 rupees for buying and 1.30 rupees for selling against USD, closing at 180.80 and 181.20, respectively.

Against Euro, the PKR lost 50 paisas for both buying and selling, closing at 201 and 202.50, respectively.

Against UAE Dirham, the PKR lost 10 paisas for both buying and selling, closing at 50.80 and 51.20, respectively.

Against Saudi Riyal, the PKR remained unchanged for both buying and selling, closing at 47.20 and 47.60, respectively.

Open-market rates for dollar on Monday

BID Rs 180.80

OFFER Rs 181.20