Friday Nov 26, 2021
KARACHI: The Pakistani rupee closed yet again above Rs175 — near its all-time low against the US dollar on Friday.
The rupee lost 48 paisas (0.27%) to close at Rs175.46 against the greenback in the inter-bank market, according to data released by the State Bank of Pakistan (SBP).
A day earlier, the local unit had closed at Rs174.98.
It is pertinent to mention here that the currency last plunged to an all-time low of Rs175.73 on November 12.
Adviser to Prime Minister on Finance and Revenue Shaukat Tarin during his visit to the Pakistan Stock Exchange (PSX) urged people not to pay attention to rumours.
"The value of the rupee will not decrease," he assured the people, warning those who are thinking that they will earn from the dollar that they will be hit hard when the value of the dollar comes down.
“These speculators will be shocked when the value of the dollar decreases,” he commented.
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 15.2% (or Rs23.19) in the past six months.
However, the real effective exchange rate (REER) index fell further to 95.6 in October 2021, a decline of 0.3% compared to the previous month.
“Cumulatively, REER has declined by 4.2% since June 2021 and 7.2% from its recent peak in April 2021,” the central bank reported.
A day earlier, State Bank of Pakistan reported that the foreign exchange reserves fell 4.1% to their lowest level since June 25, 2021.
According to data by the central bank, reserves were recorded at $16,254.1 million on November 19, down $691 million compared with $16,945.4 million on November 12 due to “external debt repayments”.
The overall reserves, including reserves held by banks other than the SBP, dropped to its seven-month low. Total reserves stood at $22,773.8 million, recording a decline of $777 million — lowest since April 30, 2021.