The Pakistani rupee was unable to maintain its momentum against the US dollar and depreciated 0.13% in the inter-bank market on Monday.
As per the State Bank of Pakistan (SBP), the rupee settled at 283.58, a loss of Re0.38. With the latest decline, the rupee has lost over 20.2% of its value against the greenback during this calendar year.
During the previous week, when the inter-bank market was only open for three days, the rupee had lost 0.53% against the US dollar to settle at 283.2. A significant decline on Monday was followed by two days of appreciation on Tuesday and Wednesday that trimmed losses, but fundamental reasons for the rupee’s weaker position remained.
The market is still concerned about a stalled programme with the International Monetary Fund (IMF) together with reports that the staff-level agreement was still a bit further away.
In a key development, Finance Minister Ishaq Dar on Sunday said that “friendly” countries were expected to materialise their commitments with Pakistan that would pave the way to close the deal with the IMF and revive the economy.
Moreover, the SBP on Friday announced the removal of Cash Margin Requirement (CMR) on the import of goods.
Analysts said that the step has been taken to resume the IMF programme and get the loan tranche of $1.2 billion to build the central bank’s foreign exchange reserves, which currently stand at $4.6 billion.
Globally, the US dollar was firm on Monday as investors assessed moves made by authorities and regulators to rein in worries over the global banking system.
Global banking stocks have been battered through the month in the wake of the sudden collapse of two US lenders and the rescue of embattled Swiss bank Credit Suisse (CSGN.S) last week, with authorities stepping in to ease investors’ nerves.
The dollar index, which measures the currency against six rivals, was up 0.078% at 103.060, having gained 0.5% on Friday amid banking jitters.
Oil prices, a key indicator of currency parity, stabilised in Asian trade on Monday as investors sought cues from broader financial markets, while comments by Russian President Vladimir Putin over the weekend ratcheted up geopolitical tensions in Europe.
Inter-bank market rates for dollar on Monday
BID Rs 283.55
OFFER Rs 285.55
Open-market movement
In the open market, the PKR lost 50 paisa for both buying and selling against USD, closing at 283.50 and 286.50, respectively.
Against Euro, the PKR remained unchanged for both buying and selling, closing at 302 and 305 respectively.
Against UAE Dirham, the PKR remained unchanged for both buying and selling, closing at 77.20 and 77.90, respectively.
Against Saudi Riyal, the PKR lost 80 paisa for both buying and selling, closing at 75.80 and 76.50, respectively.
Open-market rates for dollar on Monday
BID Rs 283.50
OFFER Rs 286.50