Rupee continues recovery against US dollar, closes tad below 260

The Pakistani rupee registered a modest gain against the US dollar for the third successive session on Friday, appreciating 0.36% to close just below 260.

As per the State Bank of Pakistan (SBP), the rupee settled at 259.99 against the greenback, up Re0.94 or 0.36% in the inter-bank market.

The rupee had registered its second successive gain on Thursday, settling at 260.93 after an appreciation of 0.37% against the greenback.

In a key development, foreign exchange reserves held by the SBP increased $66 million to $3.26 billion, data released on Thursday showed.

Total liquid foreign reserves held by the country stood at $8.73 billion. Net foreign reserves held by commercial banks stood at $5.47 billion.

Globally, the US dollar held firm on Friday as investors braced for U.S. interest rates to be higher for longer, while the yen was volatile, with incoming Bank of Japan Governor Kazuo Ueda saying it was appropriate to maintain an ultra-loose monetary policy.

Oil prices, a key indicator for Pakistan, extended gains for a second session on Friday as the prospect of lower exports from Russia offset rising inventories in the United States.

Inter-bank market rates for dollar on Friday

BID Rs 259.95

OFFER Rs 261.95

Open-market movement

In the open market, the PKR gained 2 rupees for buying and selling against USD, closing at 265.00 and 268.00, respectively.

Against Euro, the PKR gained 1 rupee for buying and selling, closing at 277.00 and 280.00 respectively.

Against UAE Dirham, the PKR lost 1.20 rupee for buying and selling, closing at 74.50 and 75.20, respectively.

Against Saudi Riyal, the PKR gained 10 paisa for buying and selling, closing at 70.00 and 70.70, respectively.

Open-market rates for dollar on Friday

BID Rs 265

OFFER Rs 268