Rupee reverses winning streak against US dollar, depreciates 0.54%

A representational image of $100 and Rs1,000 notes. — Reuters/File
A representational image of $100 and Rs1,000 notes. — Reuters/File
  • 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:

Currency Buying Selling
Australian dollar 133.5 135.5
 Canadian dollar 140.5 142.5
China yuan 23.55 23.95
Euro 193 195
Japanese yen 1.41 1.44
Saudi riyal 48.8 49.5
UAE dirham 49 49.6
UK pound sterling 234 236.5
US dollar 180.5 182

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