KARACHI: High demand for the US dollar kept Pakistan's rupee under pressure, as the local currency registered a decline for the eighth consecutive session, closing at yet another all-time low of 211.48 in the inter-bank market on Tuesday.
During intra-day trading, the currency was even quoted at 212 against before it posted a minor recovery. In the open-market, the rupee fell in the range of 214-216, said Zafar Paracha, General Secretary at the Exchange Companies Association of Pakistan (ECAP).
In the inter-bank market, the rupee finished with a loss of Rs1.52 or 0.72% to close at 211.48 to the dollar on Tuesday. In the last eight sessions alone, the rupee has shed 5.1% or Rs10.71.
Pakistan's currency has been under pressure for months as uncertainty around the International Monetary Fund’s (IMF) bailout programme and falling foreign exchange reserves continue to take a toll.
“There is a lot of pressure owing to import payments, leading to an increase in demand for dollars,” Tahir Abbas, Head of Research at Arif Habib Limited, told Business Recorder.
“Demand is high, whereas the central bank is calling for a delay in LCs,” he informed.
While Finance Minister Miftah Ismail on Monday expressed optimism that the IMF programme will be revived in the next 24-48 hours, it was not enough to stop the slide of the rupee.
Abbas, however, said that IMF's announcement would ease pressure on the local currency. “The announcement would also pave way for other creditors to release their funds to Pakistan,’ he said.
On the other hand, other market analysts urged the State Bank of Pakistan (SBP) to take more measures in arresting the decline of the rupee.
“The rupee is under severe pressure,” Asad Rizvi, ex-treasury head at Chase Manhattan Bank, tweeted on Tuesday.
“Apart from economic factors, an independent SBP, (which was) supposed to bring greater stability, is quiet,” said Rizvi.
In the open market, the PKR lost 2 rupees for both buying and selling against USD, closing at 213.50 and 215.50, respectively.
Against Euro, the PKR lost 2 rupees for both buying and selling, closing at 224 and 226, respectively.
Against UAE Dirham, the PKR lost 50 paisas for both buying and selling, closing at 58.50 and 59, respectively.
Against Saudi Riyal, the PKR lost 40 paisas for buying and 30 paisas for selling, closing at 56.90 and 57.30, respectively.
Open Bid Rs 213.50
Open Offer Rs 215.50
Interbank Closing Rates: Interbank Closing Rates For Dollar on Tuesday
Open Bid Rs 211.50
Open Offer Rs 211.80
RUPEE IN LAHORE: The Pak rupee continued to set new records as it declined to historic low of Rs 215.50 against the American dollar in the open currency market on Tuesday.
According to the local currency dealers, the free-fall of the local currency could not be stabilized despite the assurance of Federal Finance Minister Miftah Ismail that the government would hopefully signed the much-needed agreement with the IMF for the revival of the Extended Fund Facility (EFF) in a day or two.
The dealers feared that the US dollar could sharply go up if the agreement was not materialized since there was massive panic buying in the market.
In this context, the greenback continued breaking its past records and closed all-time high for buying and selling at Rs 214.00 and Rs 215.50 against the overnight close of Rs 212.00 and Rs 214.00, respectively, they said.
Similarly, the rupee also followed suit in relation to the pound sterling that was traded at record high for buying and selling at Rs 260.00 and Rs 262.00 against Monday’s close of Rs 258.00 and Rs 260.00, respectively, they added.
Copyright Business Recorder, 2022