KARACHI
The Pakistani rupee struggled against the US dollar last week, plummeting by 3.32 percent in the interbank market, 5 percent in open market and 5.08 percent in the black market/ Hundi.
According to the figures shared by the central bank, the rupee opened at 277.59 in the interbank market on Monday last and closed at 286.81 on Friday last, going down by Rs9.22 (-3.32 percent) against the greenback.
Similar was the case in the open market, as the local unit opened in the range of 277-280 against the dollar on Monday and closed the week at 291-294, depreciating by Rs14 (-5 percent).
Following suit, the dollar was quoted at Rs295 in the black market/Hundi on Monday last and Rs310 at the end of the week, down by Rs15 (-5.08 percent).
During the current fiscal year 2023-24, Pakistani rupee has shed Rs0.82 against the US dollar in the interbank market, while it plummeted by Rs59.38 against the greenback in the current year.
The rupee started the week on a negative note and depreciated during the all five sessions of the week.
The rupee weakened against the US dollar in the interbank market by Rs1.67 (-0.60 percent) on Monday, Rs3.78 (-1.34 percent) on Tuesday, Rs0.76 (-0.27 percent) on Wednesday, Rs1.35 (-0.47 percent) on Thursday, and Rs1.66 (-0.58 percent) on Friday.
Following suit, the local unit ended all five sessions of the week in the open market in the red. The local unit depreciated by Rs3 (-1.07 percent) on Monday, Rs4 (-1.43 percent) on Tuesday, Rs2 (-0.70 percent) on Wednesday, Rs2 (-0.69 percent) on Thursday, and Rs3 (-1.03 percent) on Friday.
Same was the case in the black market/Hundi, as the dollar was quoted at Rs296 on Monday, Rs298 on Tuesday, Rs300 on Wednesday, Rs305 on Thursday and Rs305 on the last session of the week.
According to experts, the knee-jerk reaction after the International Monetary Fund (IMF) programme, which resulted in the rupee’s appreciation, is reversing. They said that as import restrictions are being lifted amid IMF demands, the pressure would stay on the local currency, adding that the backlog created due to import and dividend restrictions is being cleared. They said that unless remittances and exports increase, the rupee would continue to show gradual depreciation.
The SBP reported on Thursday last that its foreign exchange reserves rose by $4.203 billion to $8.73 billion during the week ended on July 14, 2023. These have been the highest reserves held by the country since July 29, 2022. Similarly, the country’s total reserves have reached $14.07 billion, including $5.34 billion held by commercial banks.
This boost in reserves was attributed to substantial deposits received during the week, which included a $1.2 billion immediate disbursement received from the International Monetary Fund (IMF), $2 billion deposit from Saudi Arabia and an additional $1 billion deposit from United Arab Emirates (UAE).
