After opening positive, Pakistan’s rupee again depreciated against the US dollar in the inter-bank market, declining 0.12% on Wednesday.

As per the State Bank of Pakistan (SBP), the rupee closed at 225.4 after a fall of Re0.28 against the greenback.

On Tuesday, the rupee had ended the session with a loss of 0.08% against the US dollar to settle at 225.12 after a decline of Re0.18 in the inter-bank market.

Exchange Companies Association of Pakistan (ECAP) General Secretary, Muhammad Zafar Paracha, said due to strict rules and regulations of the government on Exchange Companies (ECs) and the public, size of the grey/illegal currency market has increased.

Paracha urged authorities to revisit the Afghanistan and Iran Immigration & Trade Policy, “as thousands of people from neighbouring countries are visiting frequently on daily basis without any visa and smuggling US dollar without any hindrance, leading to a decline in our foreign exchange and revenue”.

Paracha said “opportunist” buyers are purchasing US dollars from the open market, and selling them in the grey/illegal market due to the high premium offered in the latter.

Internationally, the yen hovered around a four-month high against the dollar on Wednesday as traders contemplated the shock move by the Bank of Japan to adjust its bond yield control programme and potentially open the door to move away from its ultra-easy monetary policy.

The dollar index, which measures the greenback against yen and five other major currencies, was flat at 103.94.

Oil prices, a key indicator of currency parity, rose in early Asian trade on Wednesday as US crude stocks were seen falling last week, while the dollar weakened, making oil less expensive for non-American buyers.

Inter-bank market rates for dollar on Wednesday

BID Rs 225.40

OFFER Rs 226.40

Open-market movement

In the open market, the PKR lost 55 paisas for buying and 50 paisas for selling against USD, closing at 232.25 and 234.50, respectively.

Against Euro, the PKR lost one rupee for both buying and selling, closing at 257 and 259 respectively.

Against UAE Dirham, the PKR lost 60 paisas for both buying and selling, closing at 68.30 and 68.90, respectively.

Against Saudi Riyal, the PKR lost 70 paisas for both buying and selling, closing at 65.20 and 65.70, respectively.

Open-market rates for dollar on Wednesday

BID Rs 232.25

OFFER Rs 234.50