KARACHI: After a lengthy appreciation run, the rupee snapped its rally against the US dollar and closed Rs1.18 or 0.42% week-on-week lower in the inter-bank market.
The local currency, as per a brokerage house, fell amid higher dollar demand to make foreign payments.
The rupee sustained significant losses during Wednesday’s session, depreciating 1.16% or Rs3.26 in the inter-bank market. However, it rebounded in the next session on Thursday and gained Rs1.48.
Earlier, the rupee maintained a positive close for 28 successive sessions - one of the longest appreciation runs as it cumulatively gained 10.93% since hitting a record low of 307.1 in inter-bank market on September 5.
The unprecedented increase largely came on the back of a crackdown against smuggling and controls on exchange companies.
In a related development, the country’s current account deficit declined to $8 million in September 2023 as compared to a deficit of $360 million in the same month in 2022. In August 2023, the current account deficit was $164 million.
Moreover, the foreign exchange reserves held by the State Bank of Pakistan increased by $67 million on a weekly basis, clocking in at $7.7 billion as of October 13.
In the open market, the PKR lost 3.50 rupees for both buying and selling against USD, closing at 277.50 and 280.50, respectively.
Against Euro, the PKR remained unchanged for both buying and selling, closing at 293.00 and 296.00, respectively. Against UAE Dirham, the PKR lost 1.00 rupee for both buying and selling, closing at 77.00 and 77.75, respectively. Against Saudi Riyal, the PKR lost 1.00 rupee for both buying and selling, closing at 74.50 and 75.20, 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. 278.80
Offer Close Rs. 279.00
Bid Open Rs. 277.60
Offer Open Rs. 277.80
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Weekly open-market rates for dollar
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Bid Close Rs. 277.50
Offer Close Rs. 280.50
Bid Open Rs. 274.00
Offer Open Rs. 277.00
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Copyright Business Recorder, 2023