The Pakistani Rupee recovered from yesterday’s record low against the US Dollar today. Following the trend from previous weeks, the rupee closed the week with small gains and appreciated by 18 paisas against the dollar to close at 170.48.
The local currency appreciated after logging consecutive record lows over the last few days. On Thursday, it slid to a new all-time low against the US Dollar (USD) at 170.66 after closing the day at over 170 for the first time ever on Wednesday.
The market research firm Capital Stakes said that the Pakistani Rupee (PKR) has depreciated by 61 percent since 2015. It added that the PKR has lost 0.83 percent and 6.66 percent in value on week-over-week and year-to-date bases respectively.
Cumulative Change in Fuel Prices & Exchange Rate
The #Petrolprice in #Pakistan has increased by 54% since 2015 although the rise in international crude oil prices has been much lesser. In the same period, the #Pakistani #Rupee has depreciated by 61%. #economy pic.twitter.com/GIdmSOb8zu— Capital Stake (@CapitalStake) October 1, 2021
Interbank Closing Rate – US$ Vs PKR
The #Pakistani #Rupee lost 0.83% & 6.66% in its value on WoW & YTD basis. During September the Rupee depreciated by 2.57%. #Pakistan #KSE100 #Currency #ExchangeRate #Dollar pic.twitter.com/X41fC9xiAW— Capital Stake (@CapitalStake) October 1, 2021
Pakistan’s foreign exchange reserves declined by $252 million in the week that ended on 24 September, according to data released by the State Bank of Pakistan (SBP) on Thursday.
Fitch Ratings published a report saying that it expects the rupee to depreciate even further in 2022. It downgraded its forecasts for the PKR’s average rate against the USD to 180 in 2022 as compared to its prior projection of 165.
INTER BANK MARKET.
Good news is that 1st Qtr tax collection is up by Rs 186bn to Rs 1.395trl.
But,SBP FX RESERVES fell by $780mn,further drop next week could mean widening of CAD gap that may add pressure on BoP.
Impact of 100% Cash margin imposed on 114 items & earlier on1/2
— Asad Rizvi (@asadcmka) October 1, 2021
Chase Manhattan Bank’s former Treasury Head, Asad Rizvi, tweeted that the decline in the SBP’s foreign exchange reserves could mean a further widening of the current account deficit.
The PKR also gained 32 paisas against the Pound Sterling (GBP), and 13 paisas against the Australian Dollar (AUD).
In contrast, it depreciated 69 paisas against the Euro, two paisas against the Canadian Dollar (CAD), and five paisas each against the Saudi Riyal (SAR) and the United Arab Emirates Dirham (AED).
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