The Pakistani rupee fell 0.03 percent versus the US dollar in the interbank market on Saturday, capping a turbulent month for the currency that saw it swing violently in both directions.
The rupee ended the day at 185.69, down 6 paisas, or 0.03 percent, according to the State Bank of Pakistan (SBP). After a 0.13 percent rise on Friday, the rupee finished at 185.63.
The rupee fell 1.2 percent in April as a result of the shift, but the downturn was more dramatic, with a record low of 188.18 set throughout the month.
According to Pak-Kuwait Investment Company’s Head of Research Samiullah Tariq, the rupee saw a little fluctuation, although there was no major explanation for the decline.
“The local currency is mainly steady, and it is projected to continue at this level until Eid,” he added, adding that slight changes are expected.
He previously stated that the flow of remittances normally increases just before Eid, bolstering the local currency.
“Overseas Pakistanis bring their money home to their family for Eid expenses,” he explained.
He believed that after the holidays, the trend in the foreign currency market will become clearer, since foreign remittances were now impacting the direction of the rupee versus major international currencies.
The State Bank of Pakistan (SBP) said on Friday that it has injected Rs4.09 trillion into the financial system via open market operations (OMO). This amounted to about 20% of the total deposits in domestic banks, which totaled Rs20.27 trillion.
Pakistan’s foreign exchange reserves have also decreased, with the SBP-held amount hitting $10.56 billion on Thursday. According to the SBP, the country’s total liquid foreign reserves were $16.67 billion on April 23, 2022.
“With reserves at $10.9 billion, the SBP appears to be under strain right now.”
“Moreover, dollar is being boosted by safe-haven demand, high inflation and a hawkish Federal Reserve. If these tailwinds continue to lift the greenback in FY22-23, the US dollar index will continue marching north, weakening rupee further against the greenback.”
Inter-bank market rates for dollar on Saturday
BID Rs 185.30
OFFER Rs 185.80
The PKR lost 25 paisas for purchasing and remained steady for selling versus the US dollar in the open market, finishing at 186 and 187, respectively.
The PKR fell 1.90 rupees for purchasing and 2 rupees for selling against the Euro, finishing at 196 and 198, respectively.
The PKR lost 10 paisas for purchasing and remained steady for selling against the UAE Dirham, finishing at 50.50 and 50.90, respectively.
The PKR lost 18 paisas for purchasing and remained steady for selling against the Saudi Riyal, finishing at 49 and 49.30, respectively.
Open-market rates for dollar on Saturday
BID Rs 186
OFFER Rs 187