Rupee breaks 3-day rally as dollar demand weighs
The rupee closed at 221.64 after downtick of Re0.22 during intraday trade
- Dollar demand by importers weighs.
- Seen mixed in the days to come.
- Low forex reserves remain a concern
KARACHI: The rupee's three-day stellar run was interrupted Friday after it fell 0.1% versus the dollar in the inter-bank market as the greenback remained in demand for import payments, which weighed on the local currency.
The rupee closed at 221.64 after a downtick of Re0.22, according to the State Bank of Pakistan (SBP), as compared to the previous close of 221.42.
Given the foreign exchange reserves position, analysts see the rupee to be slightly under pressure in the days to come, while it is expected to rally around the visit of the Saudi crown prince and the arrival of inflows.
Foreign exchange reserves with the SBP fell $956 million to $7.96 billion as of November 4, 2022.
Total liquid foreign reserves held by the country stood at $13.72 billion. Net foreign reserves held by commercial banks clocked in at $5.76 billion after a reduction of $2 million.
“During the week ended on November 4, 2022, SBP’s reserves decreased by $956 million to $7,957.0 million due to external debt servicing,” said the SBP in a statement.
This leaves the country with an import cover for 1.16 months only.