Karachi: The Pakistani currency failed to hold on to gains on Friday as it depreciated by 0.11 percent or Rs 0.30 against the US dollar in the interbank market amid continued decline in the country’s foreign exchange reserves.
The currency fell 0.33 percent, or Re1, to 300 rupees against the greenback in the open market as well, according to the Exchange Companies Association of Pakistan.
With the rupee depreciating, gold prices rose by 1.75 percent or Rs 4,000 to Rs 233,000 per tola (11.66 grams).
The currency depreciated on the back of a fifth straight week of decline in foreign exchange reserves. During the week ending May 26, 2023, State Bank reserves fell by $102 million to $4.09 billion due to repayment of external debt.
According to the Forex Association of Pakistan, on Thursday, the rupee recorded a dramatic recovery of Rs 27 in the open market.
Other currency dealers in the open market reported a recovery of around Rs 12 to Rs 299/$ after the central bank allowed commercial banks to buy US dollars from the interbank market to offset their clients’ credit card payments. Settle international payments.
Earlier, banks were buying about $10 million a day from the open market to settle credit card payments.
Currency dealers have warned that the decision to allow banks to buy dollars from the interbank market will put pressure on the rupee, as the dollar was available at a relatively cheap interbank rate of around Rs 285 compared to Rs 312 in the open market. .
