Rupee falls marginally, settles at 223.92 against US dollar

Pakistan’s rupee fell marginally against the US dollar, depreciating 0.05% in the inter-bank market on Thursday.

As per the State Bank of Pakistan (SBP), the rupee closed at 223.92 after a decline of Re0.11.

On Wednesday, the rupee had reverted to its losing way against the US dollar to settle at 223.81 after a decline of Re0.39 or 0.17%.

Investors have been irked over the delay in negotiations with the International Monetary Fund (IMF) on the ninth review under the Extended Fund Facility (EFF) as the country continues to suffer from low foreign exchange reserves.

Official sources revealed to Business Recorder that some policy slippages on part of the government have delayed the finalisation of a date for the start of formal negotiations on the 9th review.

As per the IMF's seventh and eighth review documents uploaded on the website at the end of September 2022, the ninth review was scheduled for November 3, 2022.

Globally, the US dollar was broadly weaker on Thursday as investors, encouraged by the prospect of a slower pace of interest rate hikes from the Federal Reserve, placed bets on riskier assets.

The eagerly-awaited readout of the Nov. 1-2 Fed meeting showed officials were largely satisfied they could now move in smaller steps.

The dollar index, which measures the greenback against six major peers, was down 0.066% at 105.830, after sliding 1% overnight.

Oil prices, a key indicator of currency parity, declined on Thursday, hovering around two-month lows, as the Group of Seven (G7) nations’ proposed range for a price cap on Russian oil was higher than current trading levels, alleviating concerns over tight supply.

A greater-than-expected build in US gasoline inventories and widening COVID-19 controls in China added to downward pressure.

Inter-bank market rates for dollar on Thursday

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 2 rupees for both buying and selling, closing at 246 and 248 respectively.

Against UAE Dirham, the PKR lost 10 paisas for buying and 15 paisas for selling, closing at 65.80 and 66.45, respectively.

Against Saudi Riyal, the PKR lost 10 paisas for both buying and selling, closing at 63.80 and 64.40, respectively.

Open-market rates for dollar on Thursday

BID Rs 228.75

OFFER Rs 231