Rupee returns to inter-bank level after assurances of no more depreciation

Earlier, currency was sold in a wide range of Rs134-142 at retail counters

KARACHI: Currency dealers adjusted the Pakistani rupee in retail market to the inter-bank closing level of Rs139 to the US dollar on Saturday after higher authorities assured of no more devaluation.

The State Bank of Pakistan (SBP) depreciated the rupee by 3.8%, or Rs5.06, to an all-time low at Rs139.05 to the greenback in the inter-bank market on its last working day of the week, Friday. It hit record intra-day low of Rs144 in the early hours of the day.

Currency dealers, however, closed dollars’ sales in a wide range of Rs134-142 at retail counters, on Friday as confusion remained regarding the near-term rupee-dollar outlook. They realigned the rupee-dollar rates at an average Rs139 on Saturday, as different dealers sold the greenback in a narrow range of Rs138-140.

Forex.com closed rupee’s trade at Rs139 compared to Rs142 a day ago. Pakistan Forex Association (PFA) notified of dollar’s closing at Rs138 compared to Rs137.7 on Friday.

The Exchange Companies Association of Pakistan (ECAP) reported the closing at Rs140 compared to Rs135.4 on Friday.

PFA President Malik Bostan said a bit of certainty has staged a comeback in retail following Prime Minister Imran Khan’s assurance of no more devaluation in rupee ahead.

ECAP General Secretary Zafar Paracha said they closed dollar sale at a higher price of Rs140 due to short supply as it was banks’ weekly off on Saturday. “Open (retail) market would move on the tune to be set by the inter-bank on Monday.” 

Published in The Express Tribune, December 2^nd, 2018.

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