KARACHI: The rupee hit its record-low closing in the inter-bank market during the week, depreciating in three of the five sessions as volatile oil prices took a toll on the currency that registered a cumulative 0.57% decrease. A minor gain on Friday reduced some of the weekly loss.
The currency has remained under pressure for several months now with a widening current account and high import bills leading to the depreciation.
However, in recent weeks, the Russia-Ukraine conflict has sent oil prices to multi-year highs, causing uncertainty in oil-importing countries like Pakistan and putting further stress on currencies worldwide.
While Pakistan’s trade deficit reduced in February, the rupee is likely to remain under pressure in the near term amid uncertainty over the country’s ability to control the current account deficit. During the week, the central bank also announced its monetary policy, leaving interest rates unchanged, but admitted that a volatile global economic situation could result in another announcement ahead of time.
Open-market movement
In the open market, the PKR lost80 paisas for both buying and selling against USD, closing at 178.80 and 179.80, respectively.
Against Euro, the PKR gained 50 paisas for both buying and selling, closing at 195.50 and 197.50, respectively. Against UAE Dirham, the PKR lost 60 paisas for bothbuying andselling, closing at 48.92 and 49.40, respectively. Against Saudi Riyal, the PKR lost 25 paisas for both buying and selling, closing at 47.10 and 47.55, respectively.
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THE RUPEE
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Weekly Interbank market rates for dollar
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Bid Close Rs. 178.65
Offer Close Rs. 178.75
Bid Open Rs. 177.40
Offer Open Rs. 177.50
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Weekly Open market rates for dollar
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Bid Close Rs. 178.80
Offer Close Rs. 179.80
Bid Open Rs. 179.80
Offer Open Rs. 179.00
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Copyright Business Recorder, 2022