KARACHI: The rupee dipped by 6 percent or Rs 6 in terms of the dollar in the inter-bank market during the week, ended on March 27, 2020.
Marketmen said that during the week the rupee touched the record low 169.50. Later, it came at low level at Rs 164 versus the dollar.
They observed that panic buying of the US currency against the short supply of dollar dragged the rupee value down in the inter-bank market. Basic factor behind the drastic cut was forward buying for payment requirements, they said.
After suspension of flight to Dubai caused decline in supply of foreign currencies, particularly the US currency, other money expert said.
At the closing session of the week, as a result of intervention by the State Bank of Pakistan (SBP), the rupee recovered slightly against the dollar, Forex Association of Pakistan (FAP) observed. He attributed the decline to short supply phenomena and adding that if supply of dollar improves as we are hopping, the rupee will struggle to look ahead in days to come. At the same time it looks difficult for the national currency to pick up sharply because of weak fundamentals before and after coronavirus, they added.
In the meantime, the government is struggling to come out of the wood but country’s chronic issues not allowing it to back on track, they said. Exporting countries are trying to cope with the issues but where Pakistan stands?
INTER-BANK MARKET RATES: On Monday, the rates were not issued due to local holiday. On Tuesday, the rupee was available at Rs 159.00 and Rs 159.10 for buying and selling respectively. On Wednesday, the rupee was down by Rs 2 for buying and selling to Rs 161.40 and Rs 161.70.On Thursday, the rupee lost about Rs 5 for buying and selling at Rs 166.00 and Rs 166.50. On Friday, the rupee depicted limited fluctuations for buying and selling at Rs 165.50 and Rs 166.50.
WORLD VALUE OF DOLLAR: In the opening sessions of the week, the dollar drifted lower mainly because of a deal backstop the US economy with a huge fiscal stimulus package promised to further ease some of the pandemic-driven sky-rocketing demand for hard cash.
The dollar was available versus the Indian rupee at Rs 78.880, the greenback was at 4.410 against the Malaysian ringgit and the US currency was trading at 7.054 in terms of the Chinese yuan.
At the closing session, the dollar showed its biggest weekly fall in more than a decade as trillions of dollars worth of stimulus efforts by the governments and central banks helped temper a rout in global markets driven by the coronavirus pandemic.