KARACHI: Pakistani rupee maintained its losing streak against the US dollar in the inter-bank market for the 13th straight session and depreciated by Rs0.51 (-0.18 percent) on Wednesday.
The State Bank of Pakistan (SBP) said in a tweet that the rupee opened at 286.39 against the dollar in the interbank market and closed at 286.90. This decline in the value of the local unit is attributed to the increased demand for foreign currency in the domestic economy.
The rupee depreciated by Rs3.74 (-1.33 percent) last week. On the other hand, the rupee has appreciated by Rs1.09 during the current fiscal year 2023-24, while it has depreciated by Rs55.48 in the current year. The rupee gained Rs6.26 (+2.23 percent) against the greenback in the month of October. The currency surged more than 6 percent in September to become the top performer in the world.
Similarly, the Pakistani rupee depreciated by 50 paisas against the greenback in the open market. The rupee was quoted in the range of 284.5-287.5 a dollar as compared to 284-287 in the previous session. The rupee has recovered by Rs44.5 against the dollar in the last 46 sessions in the open market.
The recent fluctuation comes after a remarkable 28-day winning streak for the Pakistani currency, which concluded on October 17, 2023. The rupee had fallen to a record low of Rs307.09 a dollar on September 5. But following a crackdown by agencies on illegal foreign exchange trading and structural reforms introduced by the central bank, the rupee had recovered every day in the interbank market since then.
Meanwhile, the country’s trade deficit for the month of October widened by over 38 percent on a month-on-month basis to $2.1 billion compared to a deficit of $1.52 billion in the previous month. According to Goldman Sachs, the performance of the local currency has concluded in the backdrop of financing risks and the upcoming elections. “The recent appreciation of the Pakistani rupee will likely be short-lived, given soaring interest costs and only short-term arrangements with the IMF and bilateral financing to support the external balance,” Goldman Sachs said in a report.- TLTP