KARACHI: The rupee depreciated marginally by 0.26% in the inter-bank market, settling at 285.82 against the US dollar on Friday, but its spread with the open market widened considerably as dealers attached a greater premium to the greenback.
The rupee underwent a volatile ride in the aftermath of heightened political tension due to Imran Khan’s arrest, and inter-bank rupee rates touched 300 before the currency clawed back to the 285 level.
However, the open market continued to see a wider gap, with currency dealers reporting a shortage of dollars and Saudi Riyal.
Customer and dealer accounts conveyed to Business Recorder suggested the rupee was trading in the range of 298-303 to the dollar in the open market, even as inter-bank rates, according to the State Bank of Pakistan (SBP), remained largely stable.
An incessant delay in reaching a staff-level agreement with the International Monetary Fund (IMF), uncertainty on the political front, and rising noise over Pakistan’s perceived default risk mean the rupee is likely to remain under pressure. In addition, rising demand ahead of Hajj will also cause pressure on the local currency.
Open-market rates
In the open market, the PKR lost 12 rupees for both buying and selling against USD, closing at 298.00 and 301.00, respectively.
Against Euro, the PKR lost 4 rupees for both buying and selling, closing at 321 and 324 respectively.
Against UAE Dirham, the PKR lost 1.50 rupee for buying and 1.40 rupee for selling, closing at 82.00 and 82.70, respectively.
Against Saudi Riyal, the PKR lost 1 rupee for buying and 95 paisa for selling, closing at 79.00 and 79.70, 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. 285.80
Offer Close Rs. 286.00
Bid Open Rs. 285.10
Offer Open Rs. 287.10
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Weekly open-market rates for dollar
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Bid Close Rs. 298.00
Offer Close Rs. 301.00
Bid Open Rs. 286.00
Offer Open Rs. 289.00
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Copyright Business Recorder, 2023