Pakistan’s rupee ended with a marginal drop for the fifth consecutive session against the US dollar, falling 0.08% in the inter-bank market on Monday.

As per the State Bank of Pakistan (SBP), the rupee closed at 225.82 after a fall of Re0.18 against the greenback. The rupee has depreciated by 21.9% against the US dollar during the ongoing calendar year.

Rupee remains under stress against US dollar

During the previous week, rupee again showed stability in the inter-bank market, depreciating just 0.3% to settle at 225.64 against the US dollar. However, with extreme administrative controls in place taking down the number of trades, it was the informal markets stepping in to fill the gap where reports suggest the currency traded in the range of 255-260.

During the week, foreign exchange reserves held by the State Bank of Pakistan (SBP) declined another $584 million to a critical level of $6.12 billion, the lowest since April 2014, underscoring the urgent need for the International Monetary Fund (IMF) programme to get back on track.

However, talks remained stalled on the ninth review, and with reportedly tough conditions on the table, it seems it may take a while before the IMF programme is back on track.

Internationally, China’s yuan crept higher against the dollar in thin holiday trading on Monday, with investors awaiting data due later this week to gauge the economic impact of Beijing’s decision to dismantle its strict COVID-19 protocols earlier this month.

Against a basket of currencies, the global dollar index stood at 104.325.

Oil prices, a key indicator of currency parity, remained unchanged, as most markets were closed for holidays due to Christmas and New Year celebrations. Oil prices settled about $3 per barrel higher on Friday for a second straight week of gains after Moscow said it could cut crude output in response to the G7 price cap on Russian exports.

Inter-bank market rates for dollar on Monday

BID Rs 225.80

OFFER Rs 226.80

Open-market movement

In the open market, the PKR remained unchanged for both buying and selling against USD, closing at 232.25 and 234.50, respectively.

Against Euro, the PKR lost 50 paisas for both buying and selling, closing at 260.50 and 262.50 respectively.

Against UAE Dirham, the PKR lost 10 paisas for both buying and selling, closing at 69 and 69.50, respectively.

Against Saudi Riyal, the PKR lost 20 paisas for buying and 30 paisas for selling, closing at 65.50 and 66, respectively.

Open-market rates for dollar on Monday

BID Rs 232.25

OFFER Rs 234.50