KARACHI: The rupee registered losses throughout the previous week, ending with cumulative depreciation of 0.35% against the US dollar in the inter-bank market. The local currency closed at 226.43 against the greenback, taking total depreciation to 22% during 2022.
While the rupee closed much stronger than its record low inter-bank closing rate of nearly 240 registered during the year, the simultaneous presence of a ‘grey market’ amid low supply of dollars in formal markets kept policymakers on edge. During the week, it was reported that foreign exchange reserves held by the State Bank of Pakistan (SBP) fell another $294 million to a highly critical level of $5.82 billion, data showed on Thursday, raising further alarm bells on the country’s ability to meet its debt obligations during 2023.
At the same time, delay on the International Monetary Fund (IMF) programme and no inflows from ‘friendly’ countries meant pressure on the currency is likely to persist.
Economists and experts have also expressed concern over the widening gap between inter-bank and grey market exchange rates, attributing it to the prevailing political uncertainty as well as unchecked dollar smuggling to Afghanistan.
Rupee ends last session of 2022 on a losing note against US dollar
They believe the most viable short-term solution to the issue is the IMF programme’s revival, but many say it would bring a fresh wave of inflation in the country that is already reeling from flood disaster, and high prices.
Open-market rates
In the open market, the PKR lost one rupee for both buying and selling against USD, closing at 233.25 and 235.50, respectively.
Against Euro, the PKR lost 2.50 rupees for both buying and selling, closing at 262.50 and 264.50, respectively.
Against UAE Dirham, the PKR gained 40 paisas for both buying and selling, closing at 68.50 and 69, respectively.
Against Saudi Riyal, the PKR lost 10 paisas for buying and 20 paisas for selling, closing at 65.40 and 65.90, respectively.
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THE RUPEE
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Weekly inter-bank market rates for dollar
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Bid Close Rs. 226.45
Offer Close Rs. 227.45
Bid Open Rs. 225.70
Offer Open Rs. 226.70
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Weekly open-market rates for dollar
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Bid Close Rs. 233.25
Offer Close Rs. 235.50
Bid Open Rs. 232.25
Offer Open Rs. 234.50
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Copyright Business Recorder, 2023