Rupee maintains upward trend against US dollar, settles at 284.91

The Pakistani rupee maintained its upward trajectory against the US dollar, appreciating 0.6% in the inter-bank market on Thursday.

According to the State Bank of Pakistan (SBP), the local currency settled at 284.91, an increase of Rs1.71.

This comes a day after the rupee recovered some ground against the US dollar, settling at 286.62 in the inter-bank market after a gain of Rs1.81 or 0.63%.

In a key development, an official of the International Monetary Fund (IMF) expressed confidence that the staff-level agreement (SLA) will be signed soon followed by the IMF Board’s approval, as per a statement released by the Finance Division.

The statement came after Finance Minister Ishaq Dar attended the IMF-World Bank Spring meetings through Zoom from Islamabad. The Finance Division said Jihad Azour, Director of the Middle East and Central Asia Department at the IMF, also hoped Pakistan would continue its progress on the reforms in various sectors.

The resumption of the IMF programme, which has been stalled since November last year, remains crucial for the cash-strapped economy.

Globally, the US dollar was on the back foot on Thursday after cooler-than-anticipated US inflation data lifted risk sentiment and stoked expectations that the Federal Reserve will be done with its monetary tightening after hiking one last time next month.

The dollar index, which measures the currency against six major peers, eased 0.03% to 101.44, hovering around a one-week low of 101.40 after sinking 0.6% overnight.

The Consumer Price Index climbed 0.1% last month after advancing 0.4% in February, with a decline in gasoline prices offset by higher rental costs.

Oil prices, a key indicator of currency parity, retreated on Thursday after rising for two sessions, with investors still showing lingering concern over a possible US recession and weaker oil demand.

Inter-bank market rates for dollar on Thursday

BID Rs 284.90

OFFER Rs 287.00

Open-market movement

In the open market, the PKR gained 2 rupees for both buying and selling against USD, closing at 289 and 292, respectively.

Against Euro, the PKR gained 50 paisa for both buying and selling, closing at 311.50 and 314.50 respectively.

Against UAE Dirham, the PKR lost 25 paisa for buying and 20 paisa for selling, closing at 79.10 and 79.80, respectively.

Against Saudi Riyal, the PKR gained 70 paisa for both buying and selling, closing at 76.10 and 76.80, respectively.

Open-market rates for dollar on Thursday

BID Rs 289

OFFER Rs 292