The Pakistani rupee recorded a loss for the sixth successive session against the US dollar and depreciated 0.57% in the inter-bank market on Monday.

As per the State Bank of Pakistan (SBP), the rupee closed at 221.92 after depreciating Rs1.26 or 0.57%. During the session, the local currency also traded over the 222 level before registering a minor recovery.

Fifth successive loss: rupee depreciation continues against US dollar

In the previous week, the rupee depreciated 2.7% in the inter-bank against the US dollar to settle at 220.66 on Friday, but it was the currency’s movement in the open market that left followers scratching their heads.

In the open market, the currency fell almost twice as much – 5.2% – against the US dollar, with foreign exchange companies attributing the fall to demand-and-supply dynamics.

In the inter-bank market, the rupee lost value in all five sessions even as Saudi Arabia confirmed its plan to invest $1 billion in Pakistan. Additionally, the 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.

With the announcements, Pakistan said that it has secured the required financing to meet International Monetary Fund (IMF) conditions ahead of the lender’s board meeting on August 29. However, the developments failed to revive market sentiment.

Globally, the U.S dollar surged to a 20-year high against a basket of currencies on Monday after Federal Reserve Chair Jerome Powell signalled interest rates would be kept higher for longer to bring down soaring inflation.

Meanwhile, oil price, a key determinant of currency parity, rose 1% on Monday, as expectations OPEC will cut output if needed to support prices, conflict in Libya, and rising demand amid soaring natural gas prices in Europe helped offset a dire outlook for growth in the United States.

Brent crude rose 65 cents, or 0.6%, to $101.64 a barrel, while US West Texas Intermediate (WTI) crude was up $1.22, or 1.3%, at $94.28.

Inter-bank market rates for dollar on Monday

BID Rs 222

OFFER Rs 223

Open-market movement

In the open market, the PKR lost 50 paisas for both buying and selling against USD, closing at 228.50 and 230.50, respectively.

Against Euro, the PKR gained one rupee for both buying and selling, closing at 227 and 229 respectively.

Against UAE Dirham, the PKR lost 1.70 rupees for both buying and selling, closing at 65.20 and 65.70, respectively.

Against Saudi Riyal, the PKR remained unchanged for buying while losing 10 paisas for selling, closing at 61 and 61.60, respectively.

Open-market rates for dollar on Monday

BID Rs 228.50

OFFER Rs 230.50