The local currency witnessed relative stability after days of substantial devaluation against the US dollar, as the rupee closed at Rs224.4 in interbank exchange rate on Friday.
However, the cumulative loss during the business week ending Friday stood at 71 paisa when compared with the last week’s closing value of Rs223.69.
During Friday’s trading, the Pakistan rupee was traded between a range of Rs224.40 and Rs224.50 in reaction to the Saudi finance minister’s assurance that the kingdom would help Pakistan dealing with the country finances.
But things remained quite different in open market like the previous days as the US dollar was available for Rs230.25 to Rss232.55.
On Thursday, it was reported that this difference between interbank and open market exchange rates widened during trading by one rupee thanks to weak macroeconomic indicators and dwindling foreign reserves.
However, the actual exchange rate in unofficial market is over Rs250, reports from different cities said, as the gap has become sustainable and needs to be addressed.
Throughout the week, the domestic unit remained under pressure mainly due to decreasing foreign exchange reserves of the country that reached $12.58 billion while the reserves held by SBP stood at $6.71 billion which is barely enough to cover 1.28 months of import bills.
In addition to it, the inflows through RDA (Roshan Digital Account) are losing attractiveness as the overseas Pakistanis deposited $141 million into these accounts in November which was 41 percent lower when compared with $239 million in November 2021.
One of main reasons behind this trend is more and more overseas Pakistanis opting for informal channels to take advantage of higher exchange rate back home.
During the current financial year (FYTD), the rupee has so far lost Rs19.55 or 8.71 percent in value against the US dollar while the loss stands at Rs47.88 or 21.34 percent since January 1 (CYTD).
On the other hand, the rupee was down against the pound sterling and the euro as well in interbank trading, as pound was traded for Rs275.04 against Thursday’s value of Rs273.52 after losing Rs1.5 in its value.
Similarly, the euro was available at the rate of Rs237.52 when compared with Thursday’s value of Rs235.91 as a result of net daily loss of Rs1.3.