KARACHI: The Rupee endured another horrible week, closing at an all-time low of 208.75 against the US Dollar after falling 3.1% over five sessions in the interbank market.
The steady decline in foreign exchange reserves, an aggressive rate hike by the US Federal Reserve, rising oil prices and uncertainty over the resumption of the stalled International Monetary Fund (IMF) program were all to blame as the rupee depreciated from Monday to Friday, constantly hitting new lows.
During the week, heightened uncertainty over the IMF was seen as reports indicated the lender was unhappy with Pakistan’s budget. This threw another wrench in the way of reviving the program, causing further distress in the foreign exchange market which saw foreign exchange reserves held by the State Bank of Pakistan (SBP) fall below $9 billion. .
While Pakistan moved to appease the lender by raising fuel prices, it did little to halt the rupee’s slide as all eyes remained on the IMF.
The currency should remain under pressure until clarity emerges on the IMF front.
Free market rate
In the open market, the PKR lost 8.50 rupees long and 9 rupees short against the USD, closing at 210 and 212 respectively.
Against the euro, the PKR lost 7 rupees on the purchase and sale, closing at 221 and 223 respectively.
Against the United Arab Emirates dirham, the PKR lost 2.30 rupees on the purchase and 2.20 rupees on the sale, closing at 57.10 and 57.50 respectively.
Against the Saudi Riyal, the PKR was down 2.30 rupees long and 2.20 rupees short at the close at 55.90 and 56.30, respectively.
Weekly interbank market rates for the dollar
Auction Close Rs. 208.90
Offer Close Rs. 209.10
Open offer Rs. 202.50
Open offer Rs. 202.70
Weekly free market rates for the dollar
Auction Close Rs. 210.00
Offer Close Rs. 212.00
Open offer Rs. 201.50
Open offer Rs. 203.00
Copyright Business Recorder, 2022