Rupee continues to stumble, settles at 294.93 against US dollar

Pakistani rupee’s downward trajectory continued against the US dollar, as it depreciated 1.16% in the inter-bank market on Wednesday.

At close, the rupee settled at 294.93, a decline of Rs3.42, as per the State Bank of Pakistan (SBP).

This is its weakest closing since May 11 this year, when the rupee settled near the 299 level.

On Tuesday, the rupee had also weakened against the US dollar, settling at 291.51.

In a key development, caretaker Prime Minister Anwaar-ul-Haq Kakar on Tuesday said the government will ensure continuity in economic policies, and look to improve them further.

Kakar said an increase in foreign investment under the Special Investment Facilitation Council (SIFC) would remain one of the key priorities of the government.

Globally, the US dollar was on the frontfoot after US retail sales surpassed expectations in July, underscoring the economic resilience and strengthening the case for the Federal Reserve to keep rates higher for longer.

That sent the benchmark 10-year US Treasury yield jumping to its highest since October at 4.2740% on Tuesday.

It last stood at 4.2110%.

Oil prices, a key indicator of currency parity, stabilised on Wednesday as investors weighed worries about China’s embattled economy against tighter supply in the United States.

Inter-bank market rates for dollar on Wednesday

BID                            Rs 294.90

OFFER                      Rs 295.10

Open-market movement

In the open market, the PKR lost 2.50 rupees for both buying and selling against USD, closing at 299.50 and 302.50, respectively.

Against Euro, the PKR lost 2.00 rupees for both buying and selling, closing at 324.00 and 327.00, respectively.

Against UAE Dirham, the PKR remained unchanged for both buying and selling, closing at 82.70 and 83.50, respectively.

Against Saudi Riyal, the PKR lost 45 paisa for buying and 50 paisa for selling, closing at 79.75 and 80.50, respectively.

Open-market rates for dollar on Wednesday

BID                           Rs 299.50

OFFER                      Rs 302.50