Rupee inches up, settles at 283.84 against US dollar

The Pakistani rupee registered a marginal increase against the US dollar, settling with an appreciation of 0.03% during the trading session on Friday.

According to the State Bank of Pakistan (SBP), the local currency closed at 283.84, an increase of Re0.08.

The rupee sustained a loss against the US dollar on Thursday, settling at 283.92 in the inter-bank market, a decrease of Re0.53.

In a key development, the United States called on Pakistan to move ahead on stalled reforms sought by the International Monetary Fund (IMF), promising technical help as the world’s fifth most populous nation weathers an economic crisis.

“The reform(s) that Pakistan and the IMF agreed to are not easy, but it’s crucial that Pakistan take these actions to bring the country back to sound financial footing, avoid falling into further debt and grow Pakistan’s economy,” said Elizabeth Horst, the State Department official in charge of Pakistan.

Pakistan signed a billion bailout package with the IMF in 2019 but less than half has been released as the country reneges on conditions.

Internationally, the US dollar was on track for a second straight monthly loss on Friday on mounting expectations the Federal Reserve could soon end its aggressive rate-hike cycle, while the yen steadied near a one-week high ahead of a pivotal central bank decision.

In the broader currency market, the US dollar dipped against most major peers but its losses were capped by data pointing to still-sticky inflation in the world’s largest economy, which reinforced expectations for a 25-basis-point rate hike at next week’s FOMC meeting.

Against a basket of currencies, the US dollar index last stood at 101.45 and was headed for a monthly loss of more than 1%, after having fallen about 2.3% in March.

Oil prices, a key indicator of currency parity, were heading for another monthly decline on Friday after disappointing US economic data and uncertainty over further interest rate hikes weighed on the demand outlook.

Inter-bank market rates for dollar on Friday

BID Rs 283.85

OFFER Rs 286.00

Open-market movement

In the open market, the PKR gained 50 paisa for both buying and selling against USD, closing at 287 and 290, respectively.

Against Euro, the PKR gained 1 rupee for both buying and selling, closing at 314 and 317 respectively.

Against UAE Dirham, the PKR gained 10 paisa for buying and 15 paisa for selling, closing at 78.50 and 79.20, respectively.

Against Saudi Riyal, the PKR gained 20 paisa for buying and 25 paisa for selling, closing at 75.90 and 76.60, respectively.

Open-market rates for dollar on Friday

BID Rs 287

OFFER Rs 290