KARACHI: After depreciating marginally to new lows during the week, the rupee registered hefty gains on Thursday and Friday to close the year at 176.51 against the US dollar in the inter-bank market.

The back-to-back gains reduced rupee’s fall in 2021 to 9.4%, and helped recover it from its historic low closing of 178.24 registered on Wednesday.

Economists attributed the gain largely to exporters selling their dollars in the market as they encashed their LCs instead of any other economic factor.

The week also brought an end to one of rupee’s worst years in recent history with high prices of commodities including oil driving import payments.

During the year, the SBP also introduced several measures to curb speculation to arrest the rupee decline. However, experts say the measures will only provide temporary relief and take time to take effect. They are of the view that the rupee value would continue to suffer until the trade deficit is brought under control.

Open-market movement

In the open market, the PKR gained 1.40 rupees for both buying and selling over the week, closing at 177.50 and 178.50, respectively.

Against Euro, the PKR gained one rupee for both buying and selling over the week, closing at 199.50 and 201, respectively.

Against UAE Dirham, the PKR recorded net gain of one rupee for both buying and selling, closing at 49.70 and 50.10, respectively.

Against Saudi Riyal, the PKR overall gained 90 paisas for buying and one rupee for selling, closing at 46.30 and 46.60, respectively.

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Weekly Interbank market rates for dollar

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Bid Close Rs 176.45

Offer Close Rs 176.55

Bid Open Rs 178.05

Offer Open Rs 178.15

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Weekly Open market rates for dollar

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Bid Close Rs 177.50

Offer Close Rs 178.50

Bid Open Rs 178.90

Offer Open Rs 179.90

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Copyright Business Recorder, 2022