Rupee back to losing ways, settles at 295.78 against US dollar

The Pakistan rupee reverted to its losing way against the US dollar, as the currency depreciated 0.29% in the inter-bank market on Friday.

At close, the rupee settled at 295.78, a decrease of Re0.86, as per the State Bank of Pakistan (SBP).

On Thursday, the rupee was stable against the US dollar, as it settled at 294.92 in the inter-bank.

In a key development, newly-appointed caretaker finance czar Dr Shamshad Akhtar expressed her dedication to fulfill all international obligations, including those with the International Monetary Fund (IMF), a statement from the Finance Division stated on Thursday.

Moreover, the government closed the last fiscal year (2022-23) with a budget deficit of 7.7 percent or Rs6.521 trillion as debt servicing touched a record Rs5.831 trillion.

Globally, the US dollar headed for a fifth winning week versus major peers, the longest streak for 15 months, as a resilient US economy argued for high rates for longer while China’s floundering recovery spurred demand for the safety of the US currency.

On Friday, however, the dollar trimmed some of those gains as its rally against the yen kept traders on edge against the risk of intervention, and the yuan edged up after the People’s Bank of China set a much-stronger-than-expected daily fixing.

The US dollar index - which measures the currency against six developed-market rivals, including the yen and euro - eased 0.14% to 103.26 in the Asian morning, after touching a two-month high at 103.59 overnight.

Oil prices, a key indicator of currency parity, looked set to snap a seven-week winning streak on Friday as concerns about China’s slowing economic growth and the possibility of more US interest rate hikes outweighed signs of tightening supply.

Inter-bank market rates for dollar on Friday

BID                            Rs 295.70

OFFER                      Rs 295.90

Open-market movement

In the open market, the PKR lost 1.00 rupee for both buying and selling against USD, closing at 299.00 and 302.00, respectively.

Against Euro, the PKR lost 1.00 rupee for both buying and selling, closing at 325.00 and 328.00, respectively.

Against UAE Dirham, the PKR gained 20 paisa for both buying and selling, closing at 82.70 and 83.50, respectively.

Against Saudi Riyal, the PKR gained 1.00 rupee for buying and 20 paisa for selling, closing at 79.00 and 80.50, respectively.

Open-market rates for dollar on Friday

BID                            Rs 299.00

OFFER                      Rs 302.00