Rupee ends losing streak in inter-bank, but falls to 308-310 in open market

The Pakistani rupee remained largely stable against the US dollar, appreciating marginally by 0.01% in the inter-bank market on Wednesday.

At close, the currency settled at 287.13, a gain of Re0.02, as per the State Bank of Pakistan (SBP).

However, in the open market, the US dollar was being traded in the range of 308-310 level, multiple currency dealers confirmed to Business Recorder, as the gap widened due to foreign currency shortage.

In the inter-bank market, the marginal gain comes after the rupee registered losses against the US dollar for the fifth successive session to settle at 287.15 or 0.21% down on Tuesday.

In a key development, Prime Minister Shehbaz Sharif asked the economic team that concrete steps should be taken to increase the revenue by broadening the tax net.

The prime minister on Tuesday chaired a meeting regarding the preparation of the budget for the financial year 2023-24 and the meeting was informed that the budget for the next fiscal year will be presented on June 9, 2023, after approval from the federal cabinet.

Globally, the US dollar held near a two-month high on Wednesday on safe-harbour demand as negotiations over raising the US debt ceiling dragged on with no imminent resolution in sight.

Treasury Secretary Janet Yellen warned that the federal government could no longer have enough money to pay all its bills as soon as June 1, raising the risk of a damaging default.

Investors largely shunned riskier investments as another round of talks between the White House and the Republicans to raise the borrowing limit ended on Tuesday with no sign of progress.

The dollar index, which measures the US currency against six key rivals, was fetching 103.51 in early Asian hours, just under the 103.65 two-month peak it touched overnight.

Oil prices, a key indicator of currency parity, rose on Wednesday after data showed US inventories and fuel supplies tightening and following a warning from the Saudi energy minister to speculators raised the prospect of further OPEC+ output cuts.

Inter-bank market rates for dollar on Wednesday

BID Rs 287.15

OFFER Rs 287.40

Open-market movement

In the open market, the PKR lost 1 rupee for both buying and selling against USD, closing at 306.00 and 309.00, respectively.

Against Euro, the PKR lost 1 rupee for both buying and selling, closing at 330 and 333 respectively.

Against UAE Dirham, the PKR lost 40 paisa for both buying and selling, closing at 84.20 and 85.00, respectively.

Against Saudi Riyal, the PKR lost 70 paisa for buying and 75 paisa for selling, closing at 82.20 and 83.00, respectively.

Open-market rates for dollar on Wednesday

BID Rs 306.00

OFFER Rs 309.00