brecorder.com
KARACHI: Pakistan's rupee broke a four-day losing streak against the US dollar, appreciating by a marginal two paisas in the inter-bank market on Friday.
As per the State Bank of Pakistan (SBP), the PKR closed at 171.18 against the USD, a day-on-day appreciation of two paisas or 0.01%. On Thursday, the PKR had dropped to the-then record low of 171.20.
Pakistan’s rupee has depreciated over 11% since its recent high in May this year on account of a widening current account deficit, and rising imports. With demand for dollars increasing due to the surge in prices of international commodities, the currency has remained under pressure in recent months.
"The marginal gain on Friday comes as the country's foreign exchange reserves declined by a lower margin than what was being expected," Samiullah Tariq, head of research and development at Pakistan Kuwait Investment Company, told Business Recorder.
Total liquid foreign reserves held by the country stood at $25,969.4 million on October 8, 2021, a marginal 0.12% fall week-on-week, according to data released by the SBP on Thursday.
“Expectations regarding successful negotiations with the International Monetary Fund (IMF) is also playing its part,” said Tariq, adding that being part of the IMF programme brings clarity.
"The IMF nod would provide support to Pakistan’s refinancing needs (as well)."
However, being under a flexible exchange rate regime, the downward trajectory of PKR can only be reversed if outflows are brought under control. “We need to boost our exports, remittances and curtail imports to reverse the trend,” he added.
On the other hand, the SBP has taken a number of measures to curb undesirable foreign currency outflow, especially to Afghanistan, such as imposing restrictions on dollars individuals can carry to Afghanistan, while also mandating exchange companies to conduct biometric verification for all foreign currency sale transactions of $500 and above, and outward remittances.
Law enforcement agencies have also nabbed dozens involved in hoarding and smuggling of dollars, while several measures have been taken to moderate demand/import growth.
In the open market, the PKR gained 20 paisas for both buying and selling against USD, closing at 171.50 and 171.80, respectively.
Against Euro, the PKR remained unchanged for both buying and selling, closing at 197.50 and 199, respectively.
Against UAE Dirham, the PKR lost 10 paisas for both buying and selling, closing at 48.10 and 48.30, respectively.
Against Saudi Riyal, the PKR remained unchanged 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 Friday.
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Open Bid Rs 171.15
Open Offer Rs 171.25
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RUPEE IN LAHORE: The Pak rupee appreciated its worth on the buying side while it stayed unchanged on the selling side in relation to the greenback in the open currency market on Friday.
According to the local currency dealers, the greenback lost 20 paisas for buying and closed at Rs 171.40 against the overnight closing rate of Rs 171.60 whereas it did not witness any change and firmly closed for selling at Rs 172.40.
Besides, the rupee-pound sterling parity stayed unchanged amid sluggish trading activity in the market. As a result, the British currency firmly closed at its previous closing trend for buying and selling at Rs 233.60 and Rs 235.20, respectively, they added.
RUPEE IN ISLAMABAD AND RAWALPINDI: The dollar further gained 10 paisas against the rupee at the open currency markets of Islamabad and Rawalpindi here on Friday.
The dollar opened at Rs 172.60 (buying) and Rs 172.70 (selling) against the last rate of Rs 172.50(buying) and Rs 172.60(selling).
It closed at Rs 172.60 (buying) and Rs 172.70 (selling).
The buying and selling rates of one tola of gold was Rs. 115,000(buying) and Rs115,500(selling).
