RECORDER REPORT
KARACHI: Pakistan’s rupee registered another marginal decline, falling 0.02% against the US dollar in the inter-bank market on Monday.
As per the State Bank of Pakistan (SBP), the rupee closed at 221.69 after a depreciation of Re0.05.
On Friday, the rupee had ended its three-session appreciation run against the US dollar, and declined 0.1% in the inter-bank market.
However, overall the currency has remained largely stable, appreciating 0.12% during the previous week against the US dollar. This came as the SBP along with the government introduced various administrative measures to control volatility in the exchange rate.
During the week, the SBP introduced controls to manage fluctuation in the open market, reducing foreign currency cash-carrying limits for travellers and limiting the annual dollar spending threshold for debit and credit card transactions.
However, a massive fall in foreign exchange reserves, which the SBP attributed to external debt servicing, meant Pakistan’s overall position stood at around 1.5 months of import cover. Additionally, a month-on-month decrease in workers’ remittances, a key source of dollar inflow for Pakistan, is also likely to put pressure on the current account
Globally, the US dollar held firm on Monday following last week’s bruising dive as Federal Reserve Governor Christopher Waller said that the central bank was not softening its fight against inflation.
A slightly cooler-than-anticipated inflation data on Thursday sent the greenback on a tailspin, with the dollar index sliding 3.6% over two sessions last week, its biggest two-day percentage loss since March 2009.
US consumer sentiment fell in November, pulled down by persistent worries about inflation and higher borrowing costs, a survey showed on Friday.
Oil prices, a key indicator of currency parity, pared earlier gains and fell on Monday, dragged down by a firmer US dollar and record high coronavirus cases in major Chinese cities that dashed hopes of the reopening of the economy of the world’s biggest crude importer.
Open-market movement
In the open market, the PKR remained unchanged for both buying and selling against USD, closing at 225.50 and 227.75, respectively.
Against Euro, the PKR remained unchanged for both buying and selling, closing at 240 and 242 respectively.
Against UAE Dirham, the PKR gained 20 paisas for both buying and selling, closing at 64.30 and 64.80, respectively.
Against Saudi Riyal, the PKR gained 20 paisas for both buying and selling, closing at 62.30 and 62.80, respectively.
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Open Bid Rs 225.50
Open Offer Rs 227.75
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Interbank Closing Rates: Interbank Closing Rates For Dollar on Monday
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Open Bid Rs 221.70
Open Offer Rs 222.70
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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 Monday.
According to the local currency dealers, the greenback gained 50 paisas for buying and closed at Rs 225.50 against the previous close of Rs 226.00 whereas it stayed unchanged for selling and firmly closed at its earlier close of Rs 227.75.
Moreover, the rupee depreciated its worth in the process of trading against the pound sterling. At the close, the pound’s buying and selling rates rose from Friday’s close of Rs 272.00 and Rs 274.60 to Rs 273.00 and Rs 275.50, respectively, they added.
Copyright Business Recorder, 2022
