The rupee ended with a minor 0.32% change on a weekly basis, but it does not begin to describe its ride during the four sessions – with one off day due to holiday – as the currency fell to record lows before registering a substantial gain on Friday.
The rupee began at the 184 level against the US dollar, but fell for another three sessions, crossing 188 in the inter-bank market as political uncertainty heightened in the country. Falling foreign exchange reserves, absence of a functional government, and developments on the political front gave rise to both uncertainty and speculation.
However, clarity emerged somewhat on Thursday after the central bank raised the key interest rate by 250 basis point and the Supreme Court ordered that the no-confidence vote take place by Saturday.
The developments helped the rupee register its biggest intra-day gain of 1.9% in two years on Friday, which brought the currency back to 184.68.
Market players suggest resumption of talks with the International Monetary Fund (IMF) over the seventh review of the Extended Fund Facility, rollover of loans, and ouster of Imran Khan as prime minister are key points to take into account for the road ahead.
In the open market, the PKR lost1.70rupees for buying and 2.50 rupees for selling against USD, closing at 186.20 and 188, respectively.
Against Euro, the PKR gained 50 paisas for both buying andselling, closing at 200 and 202, respectively.
Against UAE Dirham, the PKR lost 14 paisas for buying and 15 paisas for selling, closing at 50 and 50.50, respectively.
Against Saudi Riyal, the PKR lost 35 paisas for buying and 90 paisas for selling, closing at 49 and 50, respectively.
Weekly Interbank market rates for dollar
Bid Close Rs. 184.40
Offer Close Rs. 184.50
Bid Open Rs. 184.20
Offer Open Rs. 184.30
Weekly Open market rates for dollar
Bid Close Rs. 186.20
Offer Close Rs. 188.00
Bid Open Rs. 184.50
Offer Open Rs. 185.50
The story was originally published in Business Recorder on April 11, 2022.