Rupee regains its footing, settles at 282.42 against US dollar

After witnessing three successive losses, the Pakistani rupee saw some respite against the US dollar, appreciating 0.15% in the inter-bank market on Thursday.

As per the State Bank of Pakistan (SBP), the rupee settled at 282.42, an improvement of Re0.43.

A day earlier, the rupee had remained under pressure against the US dollar, settling at 282.85 in the inter-bank market on Wednesday, a decline of Re0.56 or 0.2%.

Speaking to a delegation of the Council of Pakistan Newspaper Editors (CPNE), Prime Minister Shehbaz Sharif reiterated on Wednesday that a staff-level agreement with the International Monetary Fund (IMF) would be reached in the next few days as the government had accepted even the “toughest” conditions laid down by the global financial institution.

Shehbaz said at the time of assuming government, he did not know that his predecessor Imran Khan had agreed on harsh conditions with the IMF which he later violated to undermine Pakistan’s reputation.

On Thursday, Federal Minister for Finance and Senator Ishaq Dar said that the IMF is asking for the materialisation of the commitments made by ‘friendly countries’ with Islamabad.

Globally, safe haven currencies like the US dollar and the yen were in demand on Thursday on renewed fears of a global banking crisis, after contagion from the implosion of US-based Silicon Valley Bank spread across the Atlantic to Swiss bank Credit Suisse.

In the latest blow to investors’ confidence in the financial sector, Credit Suisse’s shares on Wednesday plunged as much as 30%, after its largest shareholder said it could not provide further support to the bank.

Against a basket of currencies, the US dollar index was last 0.07% lower at 104.58, after jumping nearly 1% in the previous session.

Oil prices, a key indicator of currency parity, clawed back some ground on Thursday after sliding to 15-month lows in the previous session as markets calmed somewhat after Credit Suisse was thrown a financial lifeline by Swiss regulators.

Inter-bank market rates for dollar on Thursday

BID Rs 282.40

OFFER Rs 284.40

Open-market movement

In the open market, the PKR remained unchanged for both buying and selling against USD, closing at 282.50 and 285.50, respectively.

Against Euro, the PKR gained 2 rupees for both buying and selling, closing at 298 and 301 respectively.

Against UAE Dirham, the PKR remained unchanged for both buying and selling, closing at 77.00 and 77.70, respectively.

Against Saudi Riyal, the PKR lost 20 paisa for both buying and selling, closing at 75.00 and 75.70, respectively.

Open-market rates for dollar on Thursday

BID Rs 282.50

OFFER Rs 285.50