KARACHI: The rupee remained largely stable during the previous week, appreciating 0.12% against the US dollar to close at 221.64 as the State Bank of Pakistan (SBP) along with the government introduced various administrative measures to control volatility in the exchange rate.
Minor movements were seen in the four possible sessions in the inter-bank market, with the US dollar index, against a basket of currencies, also slumping.
During the week, the SBP introduced controls to control fluctuation in the open market, reducing foreign currency cash-carrying limits for travellers and limiting the annual dollar spending threshold for debit and credit card transactions.
However, a massive fall in foreign exchange reserves, which the SBP attributed to external debt servicing, meant Pakistan’s overall position stood at around 1.5 months of import cover. Additionally, a month-on-month decrease in workers’ remittances, a key source of dollar inflow for Pakistan, is also likely to put pressure on the current account.
Open-market rates
In the open market, the PKR remained unchanged for both buying and selling against USD, closing at 225.50 and 227.75, respectively.
Against Euro, the PKR lost 9 rupees for both buying and selling, closing at 240 and 242, respectively.
Against UAE Dirham, the PKR gained 30 paisas for buying and 40 paisas for selling, closing at 64.50 and 65, respectively.
Against Saudi Riyal, the PKR gained 30 paisas for buying and 40 paisas for selling closing, at 62.50 and 63, respectively.
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THE RUPEE
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Weekly Interbank market rates for dollar
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Bid Close Rs. 221.65
Offer Close Rs. 222.65
Bid Open Rs. 222.00
Offer Open Rs. 223.00
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Weekly Open market rates for dollar
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Bid Close Rs. 225.50
Offer Close Rs. 227.75
Bid Open Rs. 225.50
Offer Open Rs. 227.75
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Copyright Business Recorder, 2022