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KARACHI: Pakistan's rupee ended at 169.97 against the US dollar in the inter-bank market on Tuesday, a new all-time low as the currency's slide continued to rattle the market as well as policymakers.
As per the State Bank of Pakistan (SBP), the rupee declined another 37 paisas or 0.22% to finish at 169.97, even crossing the 170 level in intra-day trading.
The PKR has depreciated 10.41% since its recent high in May amid overwhelming growth in the import bill that has put severe pressure on the local currency.
In recent days, a series of measures have been notified to arrest the rupee's decline, including mandating banks to share a five-day schedule of upcoming import payments, revising it upwards from the earlier two-day directive, and directing them to seek permission for imports that are valued at $500,000 per transaction, cutting in half the original payment ceiling of $1 million. The SBP has also introduced curbs on auto financing.
“The stance of the government and the central bank is quite clear,” Tahir Abbas, Head of Research at Arif Habib Limited, told Business Recorder.
"Both have taken proactive measures. This would prove beneficial for long-term sustainable growth."
Pakistan's current account deficit for August 2021 alone clocked in at $1.5 billion, a 88% growth in a single month, while the import figure hit $6.6 billion.
Abbas said that the situation is likely to improve after talks with the International Monetary Fund (IMF) next month. Furthermore, stability in Afghanistan would also help reduce the pressure, especially as its central bank becomes operational.
Abbas was, however, concerned over the rising commodity prices in the global markets amid demand revival after the pandemic. “This is a concerning issue for a net importer like Pakistan,” he added.
Open-market movement
In the open market, PKR lost 20 paisas for both buying and selling against USD over Monday's rates, closing at 171.50 and 171.80, respectively.
Against the Euro, PKR lost 50 paisas for both buying and selling, closing at 199.50 and 201, respectively.
Against the UAE Dirham, PKR lost 25 paisas for buying and 30 paisas for selling, closing at 47.50 and 47.80, respectively.
Against Saudi Riyal, PKR lost 10 paisas for both buying and selling, closing at 45.50 and 45.70, respectively.
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Open Bid Rs 171.50
Open Offer Rs 171.80
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Interbank Closing Rates: Interbank Closing Rates For Dollar on Tuesday.
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Bid Rate Rs 169.95
Offer Rate Rs 170.50
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RUPEE IN LAHORE: The Pak rupee continued its losing streak for the second consecutive day against the greenback in the local currency market on Tuesday.
The short supply phenomenon of the greenback continued to prevail for another day in the market which helped its further appreciation for buying and selling at Rs 171.20 and Rs 172.00 against the overnight closing rate of Rs 170.80 and Rs 171.80, respectively, local currency dealers said.
Moreover, the rupee depreciated its worth by 30 paisas against the pound sterling for buying and closed at Rs 233.50 against the overnight closing rate of Rs 233.20 whereas it did not witness any change and firmly closed for selling at Rs 235.00, they added.
RUPEE IN ISLAMABAD AND RAWALPINDI: The dollar gained 80 paisas against the rupee at the open currency markets of Islamabad and Rawalpindi here on Tuesday.
The dollar opened at Rs 172.30 (buying) and Rs 172.40(selling) against last rate of Rs 171.50 (buying) and Rs 171.60(selling).
It closed at Rs 172.30 (buying) and Rs 172.40(selling).
The buying and selling rates of one tola of gold remained Rs. 109,700 (buying) and Rs109,500(selling).
Copyright Business Recorder, 2021
