Rupee inches marginally higher, settles at 283.88 against US dollar

The Pakistani rupee remained largely unchanged against the US dollar, settling with a marginal gain of 0.01% during the trading session on Wednesday.

According to the State Bank of Pakistan (SBP), the local currency closed at 283.88, an increase of Re0.04.

The rupee had registered a marginal decline against the US dollar on Tuesday, settling at 283.92 in the inter-bank market.

In a key development, the Consumer Price Index (CPI)-based inflation clocked in at a record high of 36.4% on a year-on-year basis in April 2023 compared to an increase of 35.4% in the previous month and 13.4% in April 2022, showed data released by the Pakistan Bureau of Statistics (PBS) on Tuesday.

Moreover, Pakistan’s trade deficit narrowed by 39.62% to $23.713 billion during the first 10 months (July-April) of the current fiscal year 2022-23 as compared to $39.272 billion during the same period of last year, the PBS said.

Globally, the US dollar was subdued on Wednesday, weighed by bearish US labour market data as investors fretted over the US debt ceiling and banking sector risks, while waiting for the Federal Reserve’s policy decision later in the day.

US job openings fell for a third straight month in March and layoffs increased to the highest in more than two years, data showed on Tuesday, offering some hope that softening in the labour market could aid the Fed’s fight against inflation.

The dollar index, which measures the US currency against six rivals, eased 0.029% to 101.820 after sliding 0.245% on Tuesday.

Oil prices, a key indicator of currency parity, extended losses on Wednesday after plunging 5% in the previous session, as investors fretted about the health of the US economy ahead of an expected Federal Reserve interest rate hike later in the day.

Inter-bank market rates for dollar on Wednesday

BID Rs 283.90

OFFER Rs 286.00

Open-market movement

In the open market, the PKR remained unchanged for both buying and selling against USD, closing at 286.50 and 289.50, respectively.

Against Euro, the PKR lost 1 rupee for both buying and selling, closing at 313 and 316 respectively.

Against UAE Dirham, the PKR gained 40 paisa for both buying and selling, closing at 77.80 and 78.50, respectively.

Against Saudi Riyal, the PKR remained unchanged for buying and selling, closing at 75.90 and 76.60, respectively.

Open-market rates for dollar on Wednesday

BID Rs 286.50

OFFER Rs 289.50