PKR depreciation against dollar continues

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The Pakistani rupee has experienced a continuous decline against the US dollar for the fifth consecutive working day. It fell by 0.58%, equivalent to Rs1.66, reaching a one-month low at Rs286.81 in the interbank market on Friday.

Over the past five days, the currency has cumulatively lost 3.60% or Rs10.34, according to data from the central bank.

In the open market, the rupee also depreciated by 0.5%, or Rs1.50, trading at Rs291/$ compared to Rs289.50 the previous day. As a result, the exchange rate spread between the interbank and open markets remained within the level directed by the International Monetary Fund (IMF), currently around Rs4.

To address the liquidity shortage in banks, the State Bank of Pakistan (SBP) injected Rs1.19 trillion through open market operations for a relatively longer period of 77 days. Commercial and Shariah-compliant banks received these funds at a rate of return of 22.15% and 22.37%, respectively.

On the other hand, the gold price increased by Rs1,800 per tola (11.66 grams) to Rs222,900 in Pakistan. This rise was mainly due to the depreciation of the rupee on Friday, despite the international market showing a decrease of $12 per ounce (31.10 grams) to $1,966.