KARACHI: The rupee was largely stable against the US dollar during the previous week, closing 0.45% lower even after it lost value in four of the five sessions, as the market seemed to have run into a short-term equilibrium.
The rupee, which saw a seven-session losing streak end on Friday, closed at 220.84 in the inter-bank market as the spread with the open market also narrowed.
During the week, Pakistan reported a much lower current account deficit for a third straight month in a row in September, while foreign exchange reserves also remained largely unchanged.
Additionally, the Asian Development Bank also announced $1.5 billion for Pakistan, provided under ADB’s Building Resilience with Active Countercyclical Expenditures (BRACE), and are meant to be utilised to fund the government’s $2.3 billion countercyclical development expenditure programme.
On Friday, after a gap of over four years, Pakistan was also removed from the Financial Action Task Force’s (FATF) grey-list, a huge relief for the economy that now expects a much better standing in perception among countries for investment.
While analysts have warned that foreign investment inflows would take time, removal from the grey-list improves sentiment, and is likely to reduce some pressure on the rupee.
Open-market rates
In the open market, the PKR gained 1.30 rupees for buying and 1.10 rupees for selling against USD, closing at 222.70 and 224.90, respectively.
Against Euro, the PKR gained 5.50 rupees for buying and 5.35 rupees for selling, closing at 216.50 and 218.65, respectively.
Against UAE Dirham, the PKR lost 2 rupees for buying and 2.10 rupees for selling, closing at 64 and 64.60, respectively.
Against Saudi Riyal, the PKR gained 1.20 rupees for buying and 1.10 rupees for selling closing, at 59.10 and 59.70, respectively.
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THE RUPEE
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Weekly Interbank market rates for dollar
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Bid Close Rs. 220.90
Offer Close Rs. 221.90
Bid Open Rs. 218.50
Offer Open Rs. 219.50
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Weekly Open market rates for dollar
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Bid Close Rs. 222.70
Offer Close Rs. 224.90
Bid Open Rs. 224.00
Offer Open Rs. 226.00
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Copyright Business Recorder, 2022