Rupee depreciates for third straight day against US dollar

• Local currency settles at Rs168.08 on Friday, recording a nominal decrease of 0.03%.
• Cumulatively, the currency lost around Re1 during the ongoing week.
• On September 17, foreign currency reserves held by the SBP were recorded at $19,543.4 million.

KARACHI: The rupee fell for the third straight day against the US dollar on Friday as the currency closed the week at Rs169.08, recording a loss of 0.03% during the day.

Cumulatively, the currency lost around Re1 during the ongoing week owing to higher imports and dollar outflows to Afghanistan.

Last week, the currency had dropped to an all-time low of Rs169.12 against the US dollar.

The currency has maintained a downtrend since May 14, 2021 — when it touched a 22-month high of Rs152.27 — and has lost a cumulative 11.03% (or Rs15.81) in the past four months.

During the day, the State Bank of Pakistan (SBP) conducted a market operation providing short-term loans worth Rs1,945 billion to commercial banks for seven days in order to maintain demand and supply balance.

According to the data released by the central bank on Thursday, the foreign exchange reserves held by SBP fell 2.4% on a weekly basis due to external debt payments.

On September 17, the foreign currency reserves held by the SBP were recorded at $19,543.4 million, down $479 million compared with $20,022.7 million recorded on September 10.

Meanwhile, overall liquid foreign currency reserves held by the country, including net reserves held by banks other than the SBP, stood at $26,402.6 million. Net reserves held by banks amounted to $6,859.2 million.