Rupee recovers ground against US dollar, settles at 286.62
- Currency registers 0.63% gain in the inter-bank market
A day after plunging to an all-time low, the Pakistani rupee recovered some ground against the US dollar, appreciating 0.63% in the inter-bank market on Wednesday.
According to the State Bank of Pakistan (SBP), the local currency settled at 286.62, an increase of Rs1.81.
This comes a day after the rupee dropped to a new low against the US dollar, settling at 288.43 in the inter-bank market after a loss of Rs1.34 or 0.46%.
Market experts had attributed the fall towards the lack of developments on the resumption of the International Monetary Fund (IMF) programme, which has remained stalled since last year.
The resumption of the IMF programme is crucial for the cash-strapped South Asian economy, which is battling high inflation and low foreign exchange reserves.
In a key development, the IMF in its latest report, the World Economic Outlook (WEO), revised downward the GDP growth rate projection for Pakistan from 2% to 0.5% for the current fiscal year, i.e., 2023. The Fund projected a rise in inflation from 19.9% to 27.1% and unemployment from 6.2% to 7%.
Internationally, the US dollar slipped on Wednesday ahead of a closely-watched inflation reading later in the day that will provide clues on the path of Federal Reserve interest rate hikes.
Following last week’s solid US jobs data, all eyes are now on the inflation report, with currency moves subdued ahead of the release.
Against a basket of currencies, the US dollar index fell 0.05% to 102.07.
Oil prices, a key indicator of currency parity, edged up on Wednesday as the market waited for US inflation data later in the day that will likely influence the Federal Reserve’s policy on future interest rate hikes.
Inter-bank market rates for dollar on Wednesday
BID Rs 286.60
OFFER Rs 289.00
Open-market movement
In the open market, the PKR gained 1 rupee for both buying and selling against USD, closing at 291 and 294, respectively.
Against Euro, the PKR lost 1.50 rupee for buying and 50 paisa for selling, closing at 312 and 315 respectively.
Against UAE Dirham, the PKR lost 10 paisa for both buying and selling, closing at 78.85 and 79.60, respectively.
Against Saudi Riyal, the PKR gained 20 paisa for both buying and selling, closing at 76.80 and 77.50, respectively.
Open-market rates for dollar on Wednesday
BID Rs 291
OFFER Rs 294
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