KARACHI: The rupee closed the previous week with a marginal gain of 0.4%, settling at 214.65 against the US dollar on Friday with analysts believing that the currency has reached a short-term equilibrium.
The rupee has undergone weeks of turmoil, first hitting its all-time low last month, before gaining in spectacular fashion. It then ended its 11-session appreciation run during the previous week, before marginally depreciating further. However, on Friday, the rupee registered a minor gain, ending higher three times out of five during the week.
The rupee’s rather stable ride comes in tandem with news that the International Monetary Fund (IMF) will hold its Executive Board meeting on August 29. The lender’s statement came after it was reported that Pakistan has secured commitments of financing during the current fiscal year, with the UAE and Saudi Arabia among the ‘friendly countries’ offering assurances. Meanwhile, the State Bank of Pakistan (SBP) also allowed Exchange Companies (EC) to export US dollar on consignment basis.
However, as per the SBP directives, ECs will bring the export proceeds in their USD account maintained with banks in Pakistan within three days.
Malik Bostan, Chairman at the Exchange Companies Association of Pakistan (ECAP), welcomed the central bank’s decision, saying that this will help reduce the spread in the inter-bank and open currency markets.
Open-market rates
In the open market, the PKR lost 5 rupees for both buying and selling against USD, closing at 216 and 218, respectively.
Against Euro, the PKR lost one rupee for both buying and selling, closing at 218 and 220, respectively.
Against UAE Dirham, the PKR lost 2.10 rupees for buying and 2 rupees for selling, closing at 59.60 and 60.20, respectively.
Against Saudi Riyal, the PKR lost one rupee for both buying and selling closing, at 57.20 and 57.70, respectively.
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THE RUPEE
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Weekly Interbank market rates for dollar
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Bid Close Rs. 215.00
Offer Close Rs. 215.50
Bid Open Rs. 215.50
Offer Open Rs. 216.50
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Weekly Open market rates for dollar
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Bid Close Rs. 216.00
Offer Close Rs. 218.00
Bid Open Rs. 211.00
Offer Open Rs. 213.00
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Copyright Business Recorder, 2022