Rupee closes week at Rs181.78 against US dollar

• Rupee shed 0.03% in the interbank market against the US dollar.
• Pakistan's foreign currency reserves have hit their lowest level of the current fiscal year.
• The currency market is eying the outcome of negotiations with the IMF.

KARACHI: In line with the prevailing trend during the week, the Pakistani currency lost 0.03% against the US dollar on the last trading day of the week.

The local currency dropped to an all-time low of Rs181.78 against the greenback compared to its last close of Rs181.73 against the US currency a day earlier.

The Pakistani rupee has depreciated by 15.38% (or Rs24.24) since the start of the current fiscal year on July 1, 2021, data released by the central bank revealed.

The rupee has maintained a downtrend for the past 11 months. It has lost 19.38% (or Rs29.51) to date, compared to the 22-month high of Rs152.27 recorded in May 2021.

Today's slight decline compared to the major losses posted during the week, was attributable to China’s decision to roll over Pakistan’s loan and the Asia Development Bank's (ADB) approval of $300 million for the country went in favour of the rupee.

Meanwhile, currency dealers said political uproar ahead of a no-confidence motion against Prime Minister Imran Khan and vagueness about the IMF loan programme weighed on the rupee.

“The political turmoil is giving a bad impression about the future direction of the country’s economy,” a foreign exchange dealer said.

He further added that any delays in disbursement of the next loan tranche from the IMF’s Extended Fund Facility will add to the negative view.

Forex reserves hit lowest level since mid-March 2021

Meanwhile, the country's foreign currency reserves have hit their lowest level of the current fiscal year, the central bank data showed on Thursday.

Pakistan’s foreign exchange reserves declined by $869 million during the week ended March 18, the State Bank of Pakistan (SBP) said. 

The country’s foreign reserve assets dropped to $21.439 billion, the lowest since mid-March last year, from $22.283 billion a week earlier.

The SBP reserves decreased by $869 million to $14,962.4 billion on external debt and other payments, the bank said. The reserves of commercial banks rose to $6.477 billion from $6.451 billion.

Meanwhile, open market forex rates of other currencies against the Pakistani rupee are as follows: