Inter-bank: rupee registers back-to-back gains against US dollar

The Pakistani rupee registered back-to-back gains against the US dollar as it appreciated 0.06% in the inter-bank market on Wednesday.

As per the State Bank of Pakistan (SBP), the rupee settled at 283.61 after an increase of Re0.17.

On Tuesday, the rupee recorded a slight gain to settle at 283.78 against the US dollar.

In a related development, the Ministry of Finance (MoF) has asked all ministries/ divisions and entities to meet commitments made with the International Monetary Fund (IMF) within the stipulated time to ensure successful completion of the review as well as the overall programme, well-informed sources told Business Recorder.

According to sources, Secretary of Finance has stated that the second review under the Stand-By Arrangement (SBA) is scheduled to be held in February 2024; therefore, all commitments including structural benchmarks, quantitative performance criteria, indicative targets and other commitments related to 2nd quarter must be met as agreed with the IMF.

Internationally, the US dollar remained on the backfoot versus major rivals on Wednesday, as traders braced for the conclusion of a Federal Reserve policy meeting and clues on when the US central bank will begin cutting interest rates.

The US currency edged lower to 145.385 yen in early Asian trading, adding to its 0.5% loss from the previous session.

The dollar index - which gauges the dollar against the euro, yen and four other counterparts - was steady at 103.82 following a 0.31% drop overnight.

Fed officials give updated economic and interest rate projections later in the day - following a meeting where analysts and investors expect rates to stay on hold - and investors will focus on how they see the economy holding up.

In particular, investors will be watching to see if Fed Chair Jerome Powell pushes back against the prospect of interest rate cuts in the first half of 2024.

Recent signs have been for a soft landing, but data overnight showed consumer prices unexpectedly rising in November.

Oil prices, a key indicator of currency parity, extended losses on Wednesday, after falling by more than 3% to six-month lows on oversupply and demand concerns.

Brent crude futures for February fell 33 cents, or 0.45%, to $72.91 a barrel by 0621 GMT. US West Texas Intermediate crude futures for January dropped 29 cents, or 0.42%, to $68.32 a barrel.

Inter-bank market rates for dollar on Wednesday

BID                            Rs 283.60

OFFER                      Rs 283.80

Open-market movement

In the open market, the PKR gained 25 paisa for both buying and selling against USD, closing at 281.50 and 284.50, respectively.

Against Euro, the PKR gained 50 paisa for both buying and selling, closing at 304.50 and 307.50, respectively.

Against UAE Dirham, the PKR remained unchanged for both buying and selling, closing at 77.40 and 78.10, respectively.

Against Saudi Riyal, the PKR gained 10 paisa for both buying and selling, closing at 75.30 and 76.00, respectively.

Open-market rates for dollar on Wednesday

BID                            Rs 281.50

OFFER                      Rs 284.50