Inter-bank: rupee records 12th successive gain against US dollar

The Pakistani rupee maintained its upward trajectory against the US dollar for the 12th consecutive session as it appreciated 0.1% in the inter-bank market on Thursday.

As per the State Bank of Pakistan (SBP), the rupee settled at 281.93 after an increase of Re0.27.

On Wednesday, the rupee had registered a marginal gain to settle at 282.20 against the US dollar.

In a related development, the Ministry of Finance stated that the challenge of higher markup payments persists, while emphasising both revenue enhancement and prudent expenditure control.

Globally, the US dollar nursed steep losses on Thursday and was headed for a yearly decline after two years of strong gains as expectations of interest rate cuts from the Federal Reserve next year grip markets.

With the year coming to a close, thin liquidity and limited moves are expected until the New Year.

The dollar index, which measures the US currency against six rivals, fell to a fresh five month low of 100.81. The index fell 0.5% on Wednesday and is on course for a 2.6% decline this year, snapping two straight years of strong gains.

Investor focus remains on the timing of the interest rate cuts from the Fed, with markets pricing in a 89% chance of a cut in March 2024, according to CME FedWatch tool.

Futures imply as much as 158 basis points of Fed easing next year.

Oil prices, a key indicator of currency parity, steadied on Thursday after falling sharply in the previous session, as concerns eased about shipping disruptions along the Red Sea route even as tensions in the Middle East continued to rise.

Brent crude futures inched up 2 cents to $79.75 a barrel by 0736 GMT, while US WTI crude futures were trading 3 cents lower at $74.08 a barrel.

Prices dropped nearly 2% on Wednesday as major shipping firms began returning to the Red Sea.

Inter-bank market rates for dollar on Thursday

BID                            Rs 281.93

OFFER                      Rs 282.13

Open-market movement

In the open market, the PKR gained 58 paisa for buying and 52 paisa for selling against USD, closing at 280.21 and 282.68, respectively.

Against Euro, the PKR lost 82.00 paisa for buying and 99.00 paisa for selling, closing at 308.67 and 311.66, respectively.

Against UAE Dirham, the PKR gained 37.00 paisa for buying and 34.00 paisa for selling, closing at 76.11 and 76.83, respectively.

Against Saudi Riyal, the PKR gained 29.00 paisa for buying and 24.00 paisa for selling, closing at 74.25 and 74.95, respectively.

Open-market rates for dollar on Thursday

BID                            Rs 280.21

OFFER                      Rs 282.68