Rupee depreciates after one-day gain, settles at 223.81 against US dollar

Pakistan’s rupee reverted to its losing way as the currency registered a depreciation of 0.17% against the US dollar in the inter-bank market on Wednesday.

As per the State Bank of Pakistan (SBP), the rupee closed at 223.81 after a decline of Re0.39.

On Tuesday, the rupee had ended its seven-session losing streak against the US dollar to settle at 223.42 after an improvement of Re0.24 or 0.11%.

In a key development, Nomura, a Japan-based global financial services group, warned that Pakistan among other countries is now at a high risk of currency crisis.

The Japanese bank said that 22 of the 32 countries covered by its in-house “Damocles” warning system have seen their risk rise since its last update in May.

It meant the sum of the scores generated on all 32 by the model had increased sharply to 2,234 from 1,744 since May.

Internationally, the US dollar was steady on Wednesday as investors tempered their risk appetites ahead of the release of minutes of the Federal Reserve’s policy meeting that could offer clues on the outlook for inflation and interest rates.

The Fed on Wednesday will release the minutes from its most recent meeting, with investors looking for any sign of discussions around moderating the pace of interest rate hikes.

The dollar index, which measures the greenback against six major peers, was last up 0.056% at 107.130, having slipped 0.65% overnight.

Oil prices, a key indicator of currency parity, rose on Wednesday as data showing a larger-than-expected US crude drawdown last week outweighed concerns about lower demand from China.

Prices continued to see support from denials by key OPEC producers including Saudi Arabia that the group and its allies, together called OPEC+, were not considering boosting oil output. OPEC+ next meets on December 4.

Inter-bank market rates for dollar on Wednesday

BID Rs 224

OFFER Rs 225

Open-market movement

In the open market, the PKR remained unchanged for both buying and selling against USD, closing at 228.75 and 231, respectively.

Against Euro, the PKR lost 1.50 rupees for both buying and selling, closing at 244 and 246 respectively.

Against UAE Dirham, the PKR lost 20 paisas for buying and 30 paisas for selling, closing at 65.70 and 66.30, respectively.

Against Saudi Riyal, the PKR lost 20 paisas for buying and 30 paisas for selling, closing at 63.70 and 64.30, respectively.

Open-market rates for dollar on Wednesday

BID Rs 228.75

OFFER Rs 231