KARACHI: The rupee gained nearly 5% during the previous week, appreciating in value across all the five sessions against the US dollar as the return of Ishaq Dar at helm of Pakistan’s economic affairs gave impetus to a bullish sentiment in the money market.
The rupee closed at 228.45 in the inter-bank market, moving almost Rs11.2 higher as the US dollar index, which measures the greenback against the euro, sterling and four other major peers, also moved lower.
Analysts said the return of Dar, widely seen as an advocate of a strong rupee, and measures taken by the State Bank of Pakistan (SBP) also reduced speculation activity, evident also by the hefty gains posted by the local currency in the open market.
Spread between the inter-bank and open market also edged towards a minimum, a trend not seen for several weeks.
The appreciation run, which has now gone on for six successive sessions, brings rupee’s monthly loss in September to 4.2% after it earlier inched towards its all-time historic low in the inter-bank market.
Analysts, however, say the appreciation is sentiment-driven, and fundamentals remain the same with SBP-held foreign exchange reserves clocking in at $8 billion and inflows from other sources having not been materialised yet.
Open-market rates
In the open market, the PKR gained 14 rupees for buying and 14.40 rupees for selling against USD, closing at 228 and 230, respectively.
Against Euro, the PKR gained 10 rupees for buying and 10.35 rupees for selling, closing at 225 and 227, respectively.
Against UAE Dirham, the PKR gained 3.20 rupees for buying and 3.35 rupees for selling, closing at 62.70 and 63.20, respectively.
Against Saudi Riyal, the PKR gained 3.45 rupees for buying and 3.50 rupees for selling closing, at 60.80 and 61.40, respectively.
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THE RUPEE
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Weekly Interbank market rates for dollar
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Bid Close Rs. 228.60
Offer Close Rs. 229.60
Bid Open Rs. 239.75
Offer Open Rs. 240.75
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Weekly Open market rates for dollar
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Bid Close Rs. 228.00
Offer Close Rs. 230.00
Bid Open Rs. 242.00
Offer Open Rs. 244.40
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Copyright Business Recorder, 2022