Pakistan’s rupee ended the final session of the year 2022 with a marginal loss against the US dollar, depreciating for the ninth consecutive time in the inter-bank market on Friday.

As per the State Bank of Pakistan (SBP), the rupee closed at 226.43 after a fall of Re0.02 or 0.01% against the greenback. The rupee depreciated 22% against the US dollar during the calendar year.

On Thursday, the rupee depreciated against the US dollar for the eighth straight session to settle at 226.41 after a decline of Re0.04 or 0.02%.

In a key development, foreign exchange reserves held by the SBP fell another $294 million to a highly critical level of $5.82 billion, data on Thursday showed. This is the lowest level of SBP-held reserves since April 2014.

Total liquid foreign reserves held by the country stood at $11.71 billion. Net foreign reserves held by commercial banks stood at $5.89 billion.

Economic experts have expressed concern over depleting foreign exchange reserves, and urged the government to revive the now-stalled International Monetary Fund (IMF) programme in the bid to secure further funding.

Globally, the dollar was on track for its best performance in seven years on Friday, having been buoyed by the Federal Reserve's aggressive monetary policy tightening and concerns about the global growth outlook.

The US dollar index, which measures the greenback against a basket of currencies, has surged more than 8% this year, the most since 2015. It was last 0.05% lower at 103.93.

The Fed has raised rates by a total of 425 basis points since March to curb surging inflation, a move that has kept the dollar in bid for most of the year.

But expectations that the central bank may not have to raise rates as high as previously feared have caused the greenback to unwind its towering rally.

Oil prices, a key indicator of currency parity, rose on Friday and were on track for a second straight annual gain in a volatile year marked by tight supplies because of the Ukraine war and weakening demand from the world’s top crude importer, China.

Inter-bank market rates for dollar on Friday

BID Rs 226.45

OFFER Rs 227.45

Open-market movement

In the open market, the PKR remained unchanged for both buying and selling against USD, closing at 233.25 and 235.50, respectively.

Against Euro, the PKR lost one rupee for both buying and selling, closing at 262.50 and 264.50 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 lost 20 paisas for both buying and selling, closing at 65.40 and 65.90, respectively.

Open-market rates for dollar on Friday

BID Rs 233.25

OFFER Rs 235.50