Rupee reverses winning streak against US dollar, depreciates 0.54%

• Traders say rupee will trade in a range of 180-181 during the week.
• Investors took a negative cue from the widening trade deficit.
• Pakistani rupee has depreciated by Rs24.98 since July 1, 2021.

KARACHI: Pakistan's rupee broke its seven-session winning streak against the US dollar, depreciating marginally by 0.54% in the inter-bank market on Monday.

According to the State Bank of Pakistan (SBP), the rupee closed once again surpassed the Rs182-mark, closing at Rs182.52 against the greenback compared to Saturday’s close of Rs181.55.

The local currency underwent correction today after appreciating over Re1 last week; however, traders believe that the rupee will trade within a range of 180-181 against the US dollar in the ongoing week.

Read more: Pakistan to attend IMF, World Bank meeting in US this week

Investors took a negative cue from the widening trade deficit that rose by 12% to $3.64 billion in March 2022 as compared to the same month of the last fiscal year.

The rupee has maintained a downward trend for the last 11 months. It has lost 19.86% (or Rs30.25) to date, compared to the record high of Rs152.27 recorded in May 2021.

With a fresh decline of 0.54%, the Pakistani rupee has depreciated by 15.85% (or Rs24.98) since the start of the current fiscal year on July 1, 2021, data released by the central bank revealed.

Read more: When is SBP's next monetary policy meeting?

According to a report from Tresmark, the rupee is unlikely to sustain a rally below 180, and it remained to be seen how the current government would deal with the tenure expiry of SBP Governor Reza Baqir.

“An extension could be a boost for market confidence, whereas a replacement would be seen as regressive,” the report had stated.

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