3rd successive decline: rupee settles at 285.82 against US dollar

The Pakistani rupee remained at the receiving end against the US dollar for the third successive session, depreciating 0.07% in the inter-bank market on Friday.

At close, the currency settled at 285.82, a loss of Re0.20 as per the State Bank of Pakistan (SBP). The currency has lost nearly 40% of its value or Rs80.97 against the greenback, during the ongoing fiscal year.

The decline comes after the currency sustained losses for the second consecutive session against the US dollar, closing at 285.62 in the inter-bank market on Thursday.

Pakistan’s foreign exchange reserves with its central bank decreased by $72 million to $4.312 billion at the end of last week due to external debt repayment.

The total liquid foreign exchange reserves held by the country stood at $9.938 billion as of May 12, 2023, compared to $9.99 billion on May 5, 2023, depicting a decline of $53 million.

Separately, data showed the government borrowed $8.123 billion from multiple financing sources including $900 million from foreign commercial banks during the first 10 months (July-April) of 2022-23 compared to $13.033 billion borrowed during the same period of last fiscal year, a decline of around 37.7%.

Internationally, the US dollar firmed to near a six-month peak against the yen on Friday on the back of rising US Treasury yields, as optimism over debt ceiling talks in Washington raised expectations of higher-for-longer interest rates.

President Joe Biden and top US congressional Republican Kevin McCarthy earlier this week underscored their determination to strike a deal soon to raise the government’s $31.4 trillion debt ceiling, with hopes of finalising a deal after Biden returns from the Group of Seven meeting in Japan on Sunday.

The US dollar index was last at 103.46, flirting with Thursday’s two-month high of 103.63, and was headed for a second straight weekly gain of more than 0.7%.

Oil prices, a key indicator of currency parity, rebounded on Friday from losses of more than 1% the previous day as investors turned cautiously optimistic over the fading risk of a US debt default.

Inter-bank market rates for dollar on Friday

BID Rs 285.80

OFFER Rs 286.00

Open-market movement

In the open market, the PKR lost 2 rupees for both buying and selling against USD, closing at 298.00 and 301.00, respectively.

Against Euro, the PKR remained unchanged for both buying and selling, closing at 321 and 324 respectively.

Against UAE Dirham, the PKR lost 1.30 rupee for buying and 1.20 rupee for selling, closing at 82.00 and 82.70, respectively.

Against Saudi Riyal, the PKR lost 30 paisa for both buying and selling, closing at 79.00 and 79.70, respectively.

Open-market rates for dollar on Friday

BID Rs 298.00

OFFER Rs 301.00