Karachi October 19 2022: Pakistan Rupee falls for the sixth consecutive day in interbank trading against dollar as gap continue to widen with open market rate strengthening of dollar against major currencies.
Surprisingly, in today’s trading Rupee fall at the sharpest paces in last six days and trading near 221 after eight trading sessions.
Pakistan Rupee depreciate PKR 1.25 or 0.57 percent in interbank to trade at 220.96 at PST 13:00 against yesterday closing of 219.71.
Moreover, In Open Market Rupee is trading at 228 against dollar at PST 13:00, according to Forex Association of Pakistan.
Government start clearing pending payments of letters of credit (LCs) worth $50,000 since last week as per Finance Minister Ishaq dar. “A total of 7,952 cases were pending and after these decisions, nearly 4,400 requests of opening LCs will be subtracted” He added.
The dollar index – which measures the currency against six peers including the yen, sterling and euro – added 0.2% to 112.19, after dropping to the lowest since Oct. 6 at 111.76 overnight. It marked a multi-decade peak at 114.78 at the end of September.
The greenback, which currently reigns as the safe-haven currency of choice, has sagged this week amid the bear rally in equities globally following some upbeat earnings.
Pakistan’s new finance minister, Ishaq Dar, told Reuters on Friday that he will seek rescheduling of some $27 billion worth of non-Paris Club debt largely owed to China, but will not pursue haircuts as part of any restructuring. The veteran finance minister said multilateral development banks and international donors have been “quite flexible” with ways to meet Pakistan’s external financing needs estimated at about $32 billion after devastating floods.
SBP foreign exchange reserves for the week ending October 7 2022, were decreased by USD 303 million to USD 7,596 million due to external debt repayments, as per data released by the Central Bank. Pakistan reserves witnessed second biggest drop in the year after Argentina during the period according to Bloomberg which track 53 countries foreign exchange reserves number.
