RECORDER REPORT
KARACHI: Pakistan’s rupee registered a fall against the US dollar for the 19th consecutive session, depreciating 0.08% in the inter-bank market on Monday.
As per the State Bank of Pakistan (SBP), the rupee declined by Re0.19 to close at 228.34. During the ongoing fiscal year, the rupee has depreciated 10.33% against the greenback.
During the previous week, the rupee depreciated in all five sessions against the US dollar, falling 0.44% to settle at 228.15 in the inter-bank market.
A drastic fall in foreign exchange was also reported on Thursday, with SBP reserves hitting the $4.3-billion mark after debt repayment of over $1.2 billion.
While Pakistan managed to secure a rollover of $2 billion and the UAE also announced an additional loan of $1 billion, inflows have yet to materialise, underscoring the importance of reviving the stalled International Monetary Fund (IMF) programme.
Governor of SBP Jameel Ahmad during the week assured the business community of resolving the issue of restrictions on dollars soon, as manufacturers projected dim prospects regarding industrial production if import of raw materials remains restricted.
On Sunday, the federal government kept the prices of all petroleum products unchanged by adjusting rates of petroleum levy (PL) with effect from January 16.
Internationally, the dollar fell to a seven-month low against major peers on Monday while the yen spiked to an over seven-month peak as traders ramped up bets that the Bank of Japan may make further tweaks to its yield control policy at its meeting this week.
Against a basket of currencies, the US dollar index slumped 0.46% to a seven-month trough at 101.79, as the greenback extended its selloff from last week after data showed that U.S consumer prices fell for the first time in more than 2-1/2 years in December.
With decades-high inflation in the world’s largest economy showing signs of cooling, investors are now betting that the Fed may be nearing the end of its rate-hike cycle, and that rates would not go as high as previously feared.
Oil prices, a key indicator of currency parity, eased on Monday, though held near 2023 highs, as rising numbers of COVID-19 cases in China clouded prospects for higher demand in at the world’s top crude importer as it reopens after ending strict anti-virus curbs.
Open-market movement
In the open market, the PKR lost 25 paisas for both buying and selling against USD, closing at 236.50 and 238.75, respectively.
Against Euro, the PKR gained remained unchanged for both buying and selling, closing at 269 and 271 respectively.
Against UAE Dirham, the PKR lost 20 paisas for buying and 10 paisas for selling, closing at 68 and 68.50, respectively.
Against Saudi Riyal, the PKR remained unchanged for both buying and selling, closing at 65.90 and 66.50, respectively.
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Open Bid Rs 236.50
Open Offer Rs 238.75
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Interbank Closing Rates: Interbank Closing Rates For Dollar on Monday
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Open Bid Rs 228.35
Open Offer Rs 229.35
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RUPEE IN LAHORE: The Pak rupee depreciated its worth versus major currencies including the greenback and the British pound in the open currency market on Monday.
According to the local currency dealers, the short supply phenomenon of the greenback continued to prevail throughout the trading session which helped its appreciation for buying and selling at Rs 238.00 and Rs 238.75 against the previous close of Rs 237.70 and Rs 238.50, respectively.
Similarly, the national currency also followed suit in relation to the pound sterling that was bought and sold at Rs 300.50 and Rs 303.50 against Friday’s close of Rs 299.50 and Rs 302.50, respectively, they added.
Copyright Business Recorder, 2023
