RECORDER REPORT
KARACHI: Pakistan’s rupee posted a decline for the sixth consecutive session against the US dollar, and depreciated 0.53% in the inter-bank market on Wednesday.
As per the State Bank of Pakistan (SBP), the rupee closed at 220.88 after depreciating Rs1.17. The rupee has cumulatively depreciated Rs3.09 or 1.4 % in the last six sessions.
On Tuesday, rupee had registered a decline for the fifth straight session against the US dollar, and closed at 219.71 after depreciating Re0.82 or 0.37%.
As per market experts, weakness in the local currency is due to dwindling reserves and absence of confirmations of foreign inflows.
In an interview with Bloomberg, Finance Minister Ishaq Dar said that the rupee has been “heavily undervalued”.
“It is due to speculation — and some players in the market have been responsible for that,” he added.
Globally, the dollar hung close to a 32-year peak versus the yen on Wednesday while edging up from a two-week trough against a basket of major peers as traders weighed improved risk sentiment against the prospect of aggressive Federal Reserve rate hikes.
The dollar index – which measures the currency against six peers including the yen, sterling and euro – edged up to 112.01, after dropping to the lowest since Oct. 6 at 111.76 overnight.
Oil prices, a key determinant of currency parity, rose slightly on Wednesday amid plenty of caution as bullish signals like falling US crude stocks and a generally undersupplied market were countered by bearish factors such as uncertain Chinese demand growth and falling gas prices.
Open-market movement
In the open market, the PKR lost 1.70 rupees for both buying and selling against USD, closing at 225.70 and 227.90, respectively.
Against Euro, the PKR lost 2.50 rupees for both buying and selling, closing at 222.50 and 224.50 respectively.
Against UAE Dirham, the PKR lost 2 rupees for both buying and selling, closing at 63 and 63.60, respectively.
Against Saudi Riyal, the PKR lost 55 paisas for buying and 75 paisas for selling, closing at 60 and 60.60, respectively.
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Open Bid Rs 225.70
Open Offer Rs 227.90
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Interbank Closing Rates: Interbank Closing Rates For Dollar on Wednesday
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Open Bid Rs 221.00
Open Offer Rs 222.00
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RUPEE IN LAHORE: The Pak rupee-greenback parity stayed unchanged amid sluggish trading activity in the local currency market on Wednesday.
According to the local currency dealers, the greenback did not witness any change in its demand and supply situation throughout the trading session and closed at its overnight close for buying and selling at Rs 224.00 and Rs 226.20, respectively.
Moreover, the rupee failed to sustain its day earlier recoveries and drastically declined its worth versus the pound sterling. At the close, the British currency was bought and sold at Rs 254.50 and Rs 257.00 against Monday’s close of Rs 252.50 and Rs 255.00, respectively, they added.
Copyright Business Recorder, 2022
