Pakistan’s rupee posted a decline for the sixth consecutive session against the US dollar, and depreciated 0.53% in the inter-bank market on Wednesday.
As per the State Bank of Pakistan (SBP), the rupee closed at 220.88 after depreciating Rs1.17. The rupee has cumulatively depreciated Rs3.09 or 1.4 % in the last six sessions.
On Tuesday, rupee had registered a decline for the fifth straight session against the US dollar, and closed at 219.71 after depreciating Re0.82 or 0.37%.
As per market experts, weakness in the local currency is due to dwindling reserves and absence of confirmations of foreign inflows.
In an interview with Bloomberg, Finance Minister Ishaq Dar said that the rupee has been “heavily undervalued”.
“It is due to speculation — and some players in the market have been responsible for that,” he added.
Globally, the dollar hung close to a 32-year peak versus the yen on Wednesday while edging up from a two-week trough against a basket of major peers as traders weighed improved risk sentiment against the prospect of aggressive Federal Reserve rate hikes.
The dollar index – which measures the currency against six peers including the yen, sterling and euro – edged up to 112.01, after dropping to the lowest since Oct. 6 at 111.76 overnight.
Oil prices, a key determinant of currency parity, rose slightly on Wednesday amid plenty of caution as bullish signals like falling US crude stocks and a generally undersupplied market were countered by bearish factors such as uncertain Chinese demand growth and falling gas prices.
Inter-bank market rates for dollar on Wednesday
BID Rs 221
OFFER Rs 222
Open-market movement
In the open market, the PKR lost 1.70 rupees for both buying and selling against USD, closing at 225.70 and 227.90, respectively.
Against Euro, the PKR lost 2.50 rupees for both buying and selling, closing at 222.50 and 224.50 respectively.
Against UAE Dirham, the PKR lost 2 rupees for both buying and selling, closing at 63 and 63.60, respectively.
Against Saudi Riyal, the PKR lost 55 paisas for buying and 75 paisas for selling, closing at 60 and 60.60, respectively.
Open-market rates for dollar on Wednesday
BID Rs 225.70
OFFER Rs 227.90