KARACHI: The rupee underwent significant depreciation during the previous week, falling 3.2% to settle at 286.81 against the US dollar in the inter-bank market on Friday.
The fall on Friday was its sixth successive close in the negative zone as euphoria over the International Monetary Fund (IMF) deal faded to make way for fundamentals. The depreciation in the inter-bank market also reduced the gap with rates in the open market, one of the key metrics of how Pakistan’s Stand-By Arrangement (SBA) with the IMF would be judged as the programme moves forward.
Pakistan reported higher foreign exchange reserves during the previous week, but experts believe pressure on the currency will likely stay due to lifting of import restrictions and backlog of inward shipments that would make their way into the country.
Meanwhile, the US Federal Reserve is widely expected to hike interest rates again on Wednesday, giving the dollar an upper hand against the rupee. A hike of a quarter percentage-point hike would raise the federal funds rate to a range between 5.25 and 5.5 percent — its highest level since 2001.
Open-market rates
In the open market, the PKR lost 7.00 rupees for both buying and selling against USD, closing at 288.00 and 291.00, respectively.
Against Euro, the PKR lost 9.00 rupees for both buying and selling, closing at 320.00 and 323.00, respectively.
Against UAE Dirham, the PKR lost 2.50 rupees for both buying and selling, closing at 79.30 and 80.00, respectively.
Against Saudi Riyal, the PKR lost 3.00 rupees for both buying and selling, closing at 76.70 and 77.50, respectively.
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THE RUPEE
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Weekly Interbank market rates for dollar
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Bid Close Rs. 286.70
Offer Close Rs. 286.90
Bid Open Rs. 277.40
Offer Open Rs. 277.70
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Weekly Open market rates for dollar
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Bid Close Rs. 288.00
Offer Close Rs. 291.00
Bid Open Rs. 281.00
Offer Open Rs. 284.00
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Copyright Business Recorder, 2023