KARACHI: The rupee depreciated marginally during the previous week as it lost Re0.03 or 0.01% against the US dollar.
The local unit closed at 278.57, against 278.54 it had closed the week earlier against the greenback, according to the State Bank of Pakistan (SBP). In recent months, the domestic currency has largely been around 277-279 against the dollar as traders keep an eye on some positive indicators and approval from the International Monetary Fund’s (IMF) Executive Board over a new $7-billion Extended Fund Facility (EFF).
Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb last week said the government was in the “advanced stages” of seeking assurances around external financing. He also reiterated Prime Minister Shehbaz Sharif’s an earlier statement that it would be Pakistan’s last programme with the IMF.
The agreement is still subject to approval by the IMF’s Executive Board and the timely confirmation of necessary financing assurances from Pakistan’s development and bilateral partners.
However, with those assurances pending, the IMF has not yet added Pakistan on its Executive Board schedule.
Meanwhile, Pakistan’s trade deficit shrank marginally to $3.6 billion during the first two months of fiscal year 2024-25 (2MFY25) due to an increase in exports, data released by the Pakistan Bureau of Statistics (PBS) showed. The country’s trade balance, gap between exports and imports, was recorded at a deficit of $3.58 billion in July to August period of 2024-25 as compared to $3.74 billion in the same period of the previous year.
Foreign exchange reserves held by the SBP increased by $33 million on a weekly basis, clocking in at $9.44 billion as of August 30. Total liquid foreign reserves held by the country stood at $14.74 billion. Net foreign reserves held by commercial banks stood at $5.30 billion.
Open-market rates
In the open market, the PKR lost 15 paise for buying and 1.19 rupee for selling against USD, closing at 279.10 and 280.94, respectively. Against Euro, the PKR lost 1.47 rupee for buying and 3.30 rupees for selling, closing at 309.23 and 312.34, respectively.
Against UAE Dirham, the PKR gained 4 paise for buying and lost 33 paise for selling, closing at 75.75 and 76.49, respectively.
Against Saudi Riyal, the PKR gained 5 paise for buying and lost 36 paise for selling, closing at 74.00 and 74.72, 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. 278.57
Offer Close Rs. 278.77
Bid Open Rs. 278.54
Offer Open Rs. 278.74
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Weekly open-market rates for dollar
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Bid Close Rs. 279.10
Offer Close Rs. 280.94
Bid Open Rs. 278.95
Offer Open Rs. 279.75
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Copyright Business Recorder, 2024