Rupee depreciation no more a news as dollar gets another 47-paisa boost

Unlike the Pakistan Stock Exchange, the rupee didn’t pay attention to the news coming out of Geneva and Riyadh as it further depreciated by 47 paisa against the US dollar in interbank trading on Tuesday.

By the time the session was closed, the local currency settled at Rs227.88 against the previous day’s exchange rate of Rs227.41.

Moreover, the huge gap persists between the official interbank exchange rate and the open market where the dollar was available for Rs235/Rs237.35.

Also on Tuesday, the Pakistan Stock Exchange made a comeback with the KSE-100 Index gaining 296.74 points, or 073 percent, as the news about foreign assistance coming out of the Geneva Conference resulted in positive sentiments in the market.

And the reports about Saudi Arabia’s Crown Prince Mohammed bin Salman also contributed to the trend: his directions to the authorities concerned to study increasing the kingdom’s investments in Pakistan to $10 billion and also to the Saudi Fund for Development (SFD) for increasing the Saudi deposit to Pakistan’s central bank to $5 billion.

During the current financial year, the Pakistan rupee has shed Rs23.04 or 10.11 percent in value against the dollar while the depreciation since Jan 1 stands at o.64 percent since Jan 1.

Earlier on Monday, it was reported that hoarding is main reason behind the dollar shortage in Pakistan, as a FBR member said taking action against speculators and hoarder of the greenback was a responsibility of regulators and law-enforcement agencies.

“About 90 percent of the dollars are being hoarded in Pakistan while currency smuggling has just a 10 percent share,” said Mukarram Jah Ansari about an assessment carried out by the FBR.

Meanwhile, the rupee lost 72 paisa to the pound sterling in interbank rate with a closing value of Rs277.04 which was Rs276.32 on Monday.

Similarly, the local currency weakened by Rs1.7 against euro which closed at Rs244.66 in interbank.

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