Pakistan’s rupee ended with a marginal loss for the eighth successive session against the US dollar, depreciating 0.02% in the inter-bank market on Thursday.
As per the State Bank of Pakistan (SBP), the rupee closed at 226.41 after a fall of Re0.04 against the greenback. The rupee has depreciated over 22.1% against the US dollar during the ongoing calendar year.
On Wednesday, the rupee depreciated against the US dollar for the seventh straight session to settle at 226.37 after a decline of Re0.22 or 0.1%.
Economists have expressed concern over the widening gap between inter-bank and open market exchange rates, attributing it to the prevailing political uncertainty as well as unchecked dollar smuggling to Afghanistan.
Earlier, former finance minister Dr Hafeez Pasha urged the government to review its trade agreement with Afghanistan as the rupee was being used to purchase dollars; and emphasised that the International Monetary Fund (IMF) programme should be brought back on track at the earliest.
Internationally, the dollar steadied on Thursday after riding long-end U.S. Treasury yields higher overnight, as initial optimism over China’s reopening fizzled.
The uncertainty over the global economic outlook, along with mounting worries about a recession in the US, saw the two-year Treasury yield, which typically moves in step with interest rate expectations, slip overnight. It last stood at 4.3512%.
Meanwhile, the yield on the benchmark US 10-year Treasury last stood at 3.8656%, after rising to a more than one-month high of 3.8920% overnight.
Against a basket of currencies, the US dollar index was firm at 104.28.
Oil prices, a key indicator of currency parity, dipped on Thursday as surging COVID-19 cases in China dimmed hopes of a recovery in fuel demand for the world’s largest crude oil importer.
Inter-bank market rates for dollar on Thursday
BID Rs 226.40
OFFER Rs 227.40
Open-market movement
In the open market, the PKR lost 55 remained unchanged for both buying and selling against USD, closing at 233.25 and 235.50, respectively.
Against Euro, the PKR remained unchanged for both buying and selling, closing at 261.50 and 263.50 respectively.
Against UAE Dirham, the PKR remained unchanged for both buying and selling, closing at 68.50 and 69, respectively.
Against Saudi Riyal, the PKR remained unchanged for both buying and selling, closing at 65.20 and 65.70, respectively.
Open-market rates for dollar on Thursday
BID Rs 233.25
OFFER Rs 235.50