The Pakistani rupee recorded a loss for the fifth successive session against the US dollar and depreciated 0.57% in the inter-bank market on Friday.
As per the State Bank of Pakistan (SBP), the rupee closed at 220.66 after depreciating Rs1.25 or 0.57%. On a weekly basis, the rupee registered a decline of Rs6.01 or 2.72%.
On Thursday, the Pakistani rupee had registered a loss for the fourth successive session against the US dollar to close at 219.41 after depreciating Rs1.03 or 0.47%.
The decline in the local currency continues despite reports that the Kingdom plans to invest $1 billion in Pakistan.
Saudi King Salman bin Abdulaziz gave the directive for the kingdom to support the Pakistani economy, Saudi Press Agency (SPA) reported on Thursday.
The development comes after Qatar Investment Authority (QIA), one of the largest sovereign wealth funds in the world, also announced that it aims to invest about $3 billion in different sectors of Pakistan's economy.
The announcement was made during a visit to Doha by Pakistan Prime Minister Shehbaz Sharif.
Addressing a press conference on Friday, Federal Minister for Finance and Revenue Miftah Ismail said following the announcements, Pakistan has met the $4-billion gap assigned by the International Monetary Fund (IMF).
However, despite the above-mentioned positive developments, the continuous decline in foreign exchange reserves has continued to hurt market sentiment.
Foreign exchange reserves held by the central bank fell by $87 million, clocking in at an alarming level of $7.81 billion as of August 19, 2022. The level is below 1.5 months of import cover.
Meanwhile, oil prices, a key determinant of currency parity, rose as much as $1 on Friday as fresh US data lowered recession fears, although an upcoming speech from the US Federal Reserve chairman capped further gains.
Brent crude futures climbed 73 cents, or 0.73%, to $100.07 a barrel, while US West Texas Intermediate (WTI) crude futures rose 78 cents, or 0.84%, to $92.93.
Moreover, the dollar index, which tracks the currency against six major peers, was at 108.5, on track for a 0.38% weekly gain and already up 2.5% in August.
Inter-bank market rates for dollar on Friday
BID Rs 220.50
OFFER Rs 221.50
Open-market movement
In the open market, the PKR lost 50 paisas for both buying and selling against USD, closing at 228 and 230, respectively.
Against Euro, the PKR lost one rupee for both buying and selling, closing at 228 and 230 respectively.
Against UAE Dirham, the PKR lost 50 paisas for both buying and selling, closing at 63.50 and 64, respectively.
Against Saudi Riyal, the PKR lost 50 paisas for both buying and selling, closing at 61 and 61.50, respectively.
Open-market rates for dollar on Friday
BID Rs 228
OFFER Rs 230