KARACHI: The rupee ended the previous week with a 1.3% gain against the US dollar in the inter-bank market as Pakistan moved closer to revival of its International Monetary Fund (IMF) programme.
Additionally, Prime Minister Shehbaz Sharif and Finance Minister Miftah Ismail said that the IMF was considering clubbing the seventh and eight reviews of the Extended Fund Facility (EFF), which would pave way for almost $1.9 billion of inflow. During the week, foreign exchange reserves held by the State Bank of Pakistan (SBP) also got a boost as loan from Chinese banks was finally shown to have been deposited.
As a result, the rupee gained in three of the four sessions during the week, closing at 204.85 against the dollar.
The appreciation came despite the current account deficit for May 2022 amounting to nearly $1.4 billion and oil prices maintaining their momentum. The two figures are key for Pakistan’s currency that has shed nearly 14% of its value during 2022 alone.
During the coming week, news on the IMF front is likely to set the direction for the currency market.
Open-market rates
In the open market, the PKR gained 4 rupees for both buying and selling against USD, closing at 203 and 205, respectively.
Against Euro, the PKR gained 7 rupees for both buying and selling, closing at 210 and 212, respectively.
Against UAE Dirham, the PKR gained 1.10 rupees for buying and one rupee for selling, closing at 54.70 and 55.30, respectively.
Against Saudi Riyal, the PKR gained 50 paisas for buying and 60 paisas for selling closing, at 54.30 and 54.70, respectively.
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THE RUPEE
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Weekly Interbank market rates for dollar
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Bid Close Rs. 204.70
Offer Close Rs. 204.90
Bid Open Rs. 207.50
Offer Open Rs. 207.70
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Weekly Open market rates for dollar
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Bid Close Rs. 203.00
Offer Close Rs. 205.00
Bid Open Rs. 207.00
Offer Open Rs. 209.00
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Copyright Business Recorder, 2022