Rupee's three-day losing streak ends, currency stable against US dollar

After witnessing a fall for three consecutive sessions, Pakistan's rupee ended unchanged against the US dollar in the inter-bank market on Thursday.

As per the State Bank of Pakistan (SBP), the rupee closed at 176.98. The flat line comes after the rupee depreciated 0.14%, 0.13% and 0.15% against the US dollar on Monday, Tuesday and Wednesday, respectively.

The stabilisation comes as oil prices after days of surge recorded a slight fall on Thursday as the US dollar strengthened following signs that the US Federal Reserve will tighten monetary policy in the world's biggest oil user.

Rupee falls for third consecutive session against US dollar

Brent crude futures were down 57 cents, or 0.9%, to $89.18 a barrel, after earlier falling by as much as 1.1% to $89. Brent climbed 2% on Wednesday.

US West Texas Intermediate (WTI) crude futures were down 83 cents, or 0.9%, to $86.52 a barrel, after falling by as much as 1.2% to $86.34. WTI gained 2% in the previous session.

Oil prices are directly related to sentiment around the currency as expensive imports widen Pakistan's current account adding pressure on rupee.

Internationally, the dollar climbed to multi-week highs against other major currencies on Thursday, bolstered by the prospects for faster and larger interest rate hikes in the months ahead.

The dollar index held at its highest levels since mid-December, while the euro languished at two-month lows of $1.11930. The greenback also hit its highest level in more than a year against the New Zealand dollar and a seven-week peak against Australia's currency.

Inter-bank market rates for dollar on Thursday

BID Rs 176.90

OFFER Rs 177

Open-market movement

In the open market, the PKR gained 50 paisas for both buying and selling against USD, closing at 178 and 179, respectively.

Against Euro, the PKR remained unchanged for both buying and selling, closing at 200.50 and 202.50, respectively.

Against UAE Dirham, the PKR lost 11 paisas for buying and 10 paisas for selling, closing at 49.42 and 49.90, respectively.

Against Saudi Riyal, the PKR lost 5 paisas for both buying and selling, closing at 47 and 47.45, respectively.

Open-market rates for dollar on Thursday

BID Rs 178

OFFER Rs 179