Appreciation run continues: Pakistan's rupee gains another 0.77% against US dollar

Pakistan's rupee maintained its upward trajectory against the US dollar for the fourth successive session on Wednesday, closing 0.77% higher in the inter-bank market, as investors factored in Ishaq Dar's entry at the helm of the country's economic affairs.

As per the State Bank of Pakistan (SBP), the rupee closed at 232.12 after appreciating Rs1.79 or 0.77%. In the last four trading sessions, the rupee has cumulatively appreciated Rs7.59 or 3.3%.

On Tuesday, the rupee had continued its upward path for the third successive session, closing at 233.91 after appreciating Rs3.11 or 1.33% in the inter-bank market as Dar's arrival in Pakistan after five years of exile in London bolstered the money market's confidence.

Dar, an advocate of a stronger rupee, had earlier stated that he wanted to get Pakistan out of its economic rut.

On Wednesday, the Pakistan Muslim League-Nawaz (PML-N) leader took oath as federal minister, set to replace Dr Miftah Ismail who served a short stint as finance chief for the coalition government.

Dar takes charge of Pakistan's economy at a time when the country is battling the devastation of flash floods, which have caused losses to the tune of $30 billion, high inflation, and falling foreign exchange reserves.

Talking to media persons after his oath-taking ceremony on Wednesday, Dar lashed out at the previous government of Pakistan Tehreek-e-Insaf (PTI) over its economic policies and leaving “landmines’ for the incumbent government.

Dar said that stabilising the currency is the current government‘s top priority. “I believe speculation in the currency market should end, and I believe that those involved in it have reverted to the right direction, which is evident with the rupee’s recent gains.

“Our second priority is to control inflation and lower the interest rate,” he added.

Globally, the dollar hit a fresh two-decade peak against a basket of currencies on Wednesday on the back of rising Treasury yields, while sterling languished near a record low on concerns over Britain’s radical tax cuts to spur growth.

The US dollar index hit a new high of 114.68 in Asia trade and was last up 0.42% at 114.62.

Oil prices, a key indicator of currency parity, were broadly stable on Wednesday as pressure from a strengthening dollar and crude storage builds was offset by US production cuts caused by Hurricane Ian.

Inter-bank market rates for dollar on Wednesday

BID Rs 231.75

OFFER Rs 232.75

Open-market movement

In the open market, the PKR gained one rupee for both buying and selling against USD, closing at 231 and 233, respectively.

Against Euro, the PKR gained 2 rupees for both buying and selling, closing at 222 and 224 respectively.

Against UAE Dirham, the PKR gained 50 paisas for both buying and selling, closing at 62.50 and 63, respectively.

Against Saudi Riyal, the PKR gained 30 paisas for both buying and selling, closing at 60.70 and 61.20, respectively.

Open-market rates for dollar on Wednesday

BID Rs 231

OFFER Rs 233