10th straight gain: Rupee settles below 222

Pakistan's rupee maintained its upward trajectory against the US dollar for the tenth straight session, appreciating 0.9% in the inter-bank market on Thursday.

As per the State Bank of Pakistan (SBP), the rupee closed at 221.94 after appreciating Rs2 or 0.90%. In the last ten trading sessions, the rupee has cumulatively appreciated Rs17.76 or 8%.

On Wednesday, Pakistan's rupee appreciated against the US dollar for the ninth successive session, settling at 223.94 after appreciating Rs1.7 or 0.76%.

The recent appreciation run is driven by a decline in speculative activity in the currency market, alongside the expectation of central bank action against financial institutions involved in currency manipulation.

State Bank of Pakistan (SBP) chief spokesperson Abid Qamar on Wednesday said that the central bank will soon complete an investigation into alleged manipulation by commercial banks of foreign exchange operations in the country.

Pakistan’s rupee has fluctuated wildly this year, particularly recently, hitting record lows against the US dollar last month before suddenly rising in recent days, leading authorities to suspect manipulation by banks and exchange companies.

“The investigations are being carried out by the regulator and results might come soon,” Qamar said.

Moreover, the Asian Development Bank (ADB) has also announced to provision of flood relief support to Pakistan to the tune of $2.3-2.5 billion, including $1.5 billion for the BRACE programme, which will improve the inflows position of the country.

Internationally, the dollar fought for a footing in choppy trade on Thursday, with support from upbeat US data and hawkish policymaker comments, while the prospect of higher energy prices helped exporters’ currencies and weighed on those of importers.

The US dollar index wobbled 0.06% lower to 110.86, off lows near 110 from earlier in the week, though some distance below last week’s 20-year high of 114.78.

Oil prices, a key determinant of currency parity, stabilised near three-week highs on Thursday after OPEC+ agreed to further tighten global crude supply with a deal to slash production by about 2 million barrels per day, the largest reduction since 2020.

Inter-bank market rates for dollar on Thursday

BID Rs 221.80

OFFER Rs 222.80

Open-market movement

In the open market, the PKR gained 3.50 rupees for both buying and selling against USD, closing at 221.50 and 223.50, respectively.

Against Euro, the PKR gained 2 rupees for both buying and selling, closing at 220 and 222 respectively.

Against UAE Dirham, the PKR gained one rupee for both buying and selling, closing at 61 and 61.50, respectively.

Against Saudi Riyal, the PKR gained 1.30 rupees for both buying and selling, closing at 59.20 and 59.70, respectively.

Open-market rates for dollar on Thursday

BID Rs 221.50

OFFER Rs 223.50