Rupee maintains upward trend against US dollar

The Pakistani rupee continued its upward momentum against the US dollar, appreciating 0.38% in the inter-bank market on Thursday.

As per the State Bank of Pakistan (SBP), the currency closed at 264.38 against the US dollar, an increase of Re1. The currency has depreciated by 22.4% during the ongoing fiscal year against the greenback.

The Pakistani rupee had maintained its upward momentum against the US dollar on Wednesday, settling at 265.38 against the US dollar, an appreciation of Rs1.96 or 0.74%.

In a key development, Federal Minister for Finance and Revenue Ishaq Dar introduced the Finance (Supplementary) Bill, 2023, announcing various amendments that feature taxation measures of Rs170 billion (approximately $640 million), as Islamabad moves to convince the International Monetary Fund (IMF) to revive its bailout programme.

Later, the government also increased the price of petrol by Rs22.20 per litre, taking it to Rs272 with effect from February 16. It also announced an increase in the price of high-speed diesel by Rs17.20 per litre, taking it to Rs280.

The hike in petrol prices was attributed to rupee’s depreciation against the US dollar in recent weeks, said the government.

Internationally, the US dollar stalled on Thursday as investors scooped up higher-risk currencies after a run of strong US economic data reinforced confidence in the global growth outlook, even though the Federal Reserve looks set to raise interest rates further.

Data from the US Commerce Department showed on Wednesday that retail sales in the United States rebounded sharply in January after two straight monthly declines, driven by purchases of big-ticket items like motor vehicles and other goods.

That came just a day after US inflation figures showed consumer prices slowing, but still sticky.

The US dollar index fell 0.1% to 103.67, after touching a six-week high of 104.11 the previous day.

Oil prices, a key indicator of currency parity, rose on Thursday as hopes of a robust fuel demand recovery in top oil consumer China offset losses arising from strength in the greenback and a large build in US crude inventory.

Inter-bank market rates for dollar on Thursday

BID Rs 264.35

OFFER Rs 266.35

Open-market movement

In the open market, the PKR gained 50 paisa for buying and selling against USD, closing at 265 and 268, respectively.

Against Euro, the PKR lost 50 paisa for buying and selling, closing at 280.50 and 283.50 respectively.

Against UAE Dirham, the PKR gained 70 paisa for buying and 60 paisa for selling, closing at 73 and 73.70, respectively.

Against Saudi Riyal, the PKR gained 50 paisa for buying and 40 paisa for selling, closing at 70 and 70.70, respectively.

Open-market rates for dollar on Thursday

BID Rs 265

OFFER Rs 268