Rupee closes week at Rs177.5 against US dollar
March 04, 2022
- Local currency settles at Rs177.50 against the greenback.
- Analyst says outlook depends upon commodity prices and geopolitical situation.
- Rupee has depreciated by 12.66% since July 1, 2021.
KARACHI: Contrary to the prevailing trend during the week, the Pakistani currency gained 0.19% against the US dollar on the last trading day of the week.
The local currency settled at Rs177.50 against the greenback compared to its last close of Rs177.83 against the US currency a day earlier.
Speaking to Geo.tv, Pakistan-Kuwait Investment Company Head of Research Samiullah Tariq said that the currency fluctuated during the week due to geopolitical tensions and rising commodity prices.
“Though the trade number was encouraging where monthly trade deficit was 10-month low, geopolitical tensions and rising commodity prices impacted the outlook for trade,” he said.
The analyst was of the view that the outlook depends upon commodity prices and the geopolitical situation.
After posting a fresh increase of 0.19%, the Pakistani rupee has depreciated by 12.66% (or Rs19.96) since the start of the current fiscal year on July 1, 2021, data released by the central bank revealed.
The rupee had maintained a downward trend for the past ten months. It has lost 16.56% (or Rs25.23) to date, compared to the record high of Rs152.27 recorded in May 2021.
Investors are also closely monitoring developments regarding the International Monetary Fund (IMF) review.
Pakistan and the IMF will kick-start virtual parleys today for the completion of the seventh review under the Extended Fund Facility (EFF), where the PM’s relief package and granting another tax amnesty for the industrial sector will be major thorny issues between the two sides.
Traders are also closely watching the outcome of the plenary session of the Financial Action Task Force (FATF) starting from February 21 to March 4 in Paris for the clue regarding the rupee’s future course.
The FATF's upcoming decision would decide whether Pakistan should exit from the grey list.
