Pakistan's rupee worsened for the third consecutive session, depreciating by 0.15% against the US dollar in the inter-bank market on Thursday.

As per the State Bank of Pakistan (SBP), the rupee closed at 176.49 after a day-on-day depreciation of 27 paisas or 0.15%. The decline comes after the currency registered a fall of 0.02% on Wednesday and another drop of 0.15% on Tuesday.

Despite the losses, the currency has recovered nearly 1% after touching its all-time low of Rs178.24 on December 29, 2021.

The depreciation comes as oil prices rise in the international markets despite the increase in Omricon cases, which has reignited concerns of a higher import bill, adding pressure to the currency.

Earlier, Goldman Sachs said that it expects Brent oil prices to rise above $100 per barrel later this year, as a demand-hit from the Omicron coronavirus variant remains far smaller than expected.

“The rise in oil prices will have a far-reaching implication for Pakistan's economy, which is already facing a deficit. Thus, an increase of $10 per barrel in oil prices would add $2 billion more on the oil import numbers,” said Topline Securities CEO Mohammed Sohail, while talking to a private channel.

Sohail added that he expects oil prices to remain high, adding to the stress on Pakistan's current account.

He said that the government, facing a shortage of funds, will be compelled to pass on the effect to the consumers. “Due to this, inflation would remain in double digits for the coming months,” said Sohail.

Last week, the government raised the ex-depot prices of petroleum products up to Rs 3.33 per litre, pushing their prices to the highest level in history amid a spike in the international market.

Inter-bank market rates for dollar on Thursday

BID Rs 176.45

OFFER Rs 176.60

Open-market movement

In the open market, the PKR lost 20 paisas for both buying and selling against USD, closing at 177.50 and 178.50, respectively.

Against Euro, the PKR gained 50 paisas for buying and 55 paisas for selling, closing at 199.50 and 201.45, respectively.

Against UAE Dirham, the PKR remained unchanged for both buying and selling, closing at 48.62 and 49.10, respectively.

Against Saudi Riyal, the PKR remained unchanged for both buying and selling, closing at 46.65 and 47.10, respectively.

Open-market rates for dollar on Thursday

BID Rs 177.50

OFFER Rs 178.50