Rupee remains stable, settles at 224.71 against US dollar

Pakistan’s rupee was largely stable against the US dollar in the inter-bank market on Wednesday.

As per the State Bank of Pakistan (SBP), the rupee closed at 224.71 after a decline of Re0.01. The rupee has depreciated by 21.47% against the US dollar during the ongoing calendar year.

On Tuesday, the rupee had registered a fall for the seventh straight session against the US dollar to settle at 224.70 after a decrease of Re0.05 or 0.02%.

In a key development, the International Monetary Fund (IMF) said on Tuesday that discussions to date in the context of the 9th review of Pakistan’s Extended Arrangement under the Extended Fund Facility (EFF) have been productive, and it was looking forward to continuing the dialogue.

“Discussions to date in the context of the 9th review have been productive,” IMF Resident Representative in Pakistan Esther Pérez Ruiz told Business Recorder via message.

Moreover, Finance Minister Ishaq Dar reiterated on Tuesday that Pakistan is seeking financial help from Saudi Arabia which will include doubling the current deferred oil payment facility given by Riyadh to $2.4 billion per year.

Globally, the US dollar struggled to gain a foothold on Wednesday after a sharp dive overnight on cooler-than-expected inflation data which fuelled expectations that the Federal Reserve will chart a moderate rate hike path later in the day.

After delivering four consecutive 75 basis points hikes, the US central bank was widely expected to increase interest rates by 50 basis points as it concludes its two-day meeting on Wednesday.

The dollar index, which measures the greenback versus six major currencies, fell 0.067% to 104.000, having slid 0.9% overnight.

Oil prices, a key indicator of currency parity, were broadly stable on Wednesday as bearish signals from data indicating a surprise build in US crude inventories met forecasts of oil demand rebounding over 2023 from OPEC and the International Energy Agency (IEA).

Inter-bank market rates for dollar on Wednesday

BID Rs 224.75

OFFER Rs 225.75

Open-market movement

In the open market, the PKR remained unchanged for both buying and selling against USD, closing at 231.70 and 234, respectively.

Against Euro, the PKR lost 1.50 rupees for both buying and selling, closing at 253.50 and 255.50 respectively.

Against UAE Dirham, the PKR lost 30 paisas for both buying and selling, closing at 67 and 67.50, respectively.

Against Saudi Riyal, the PKR lost 30 paisas for both buying and selling, closing at 64.10 and 64.60, respectively.

Open-market rates for dollar on Wednesday

BID Rs 231.70

OFFER Rs 234