Inter-bank: rupee ends losing streak with marginal gain against US dollar

The Pakistani rupee ended its four-session losing streak against the US dollar with a marginal appreciation of 0.02% in the inter-bank market on Thursday.

At close, the currency settled at 286.81, an increase of Re0.07, as per the State Bank of Pakistan (SBP).

In the open-market, however, the rupee weakened against the US dollar on Thursday, while dealers said foreign currency was available at counters.

On Wednesday, the rupee registered losses for the fourth session in a row, to settle at 286.88, lower by 0.11% against the US dollar in the inter-bank.

In a key development, Esther Perez Ruiz, the International Monetary Fund (IMF) resident representative for Pakistan, said on Thursday that the country has to satisfy the lender on three counts, starting with a budget to be presented on Friday before its board will review whether to release at least some of the $2.5 billion still to be disbursed under a lending programme that will expire at the end of this month.

Globally, the US dollar was on the back foot on Thursday, though it drew some support from higher US Treasury yields as traders contemplated the possibility of another rate hike by the US Federal Reserve, even if it pauses next week.

The increased expectation that US and global interest rates may rise further has come on the back of surprise rate increases by the Bank of Canada (BoC) and the Reserve Bank of Australia (RBA) this week.

The US dollar index dipped slightly to 104.02, though strayed not too far from an over two-month high hit last week, on the back of higher Treasury yields.

Oil prices, a key indicator of currency parity, steadied on Thursday as tighter supply resulting from Saudi Arabia’s pledged production cut and a potential pause to US interest rate hikes offset worries over demand weakness and a global economic slowdown.

Inter-bank market rates for dollar on Thursday

BID Rs 286.60

OFFER Rs 286.80

Open-market movement

In the open market, the PKR lost 5 rupees for both buying and selling against USD, closing at 302.00 and 305.00, respectively.

Against Euro, the PKR lost 4 rupees for both buying and selling, closing at 319.00 and 322.00 respectively.

Against UAE Dirham, the PKR lost 70 paisa for both buying and selling, closing at 83.20 and 84.00, respectively.

Against Saudi Riyal, the PKR lost 1.55 rupee for buying and 1.50 rupee for selling, closing at 79.30 and 80.00, respectively.

Open-market rates for dollar on Thursday

BID Rs 302.00

OFFER Rs 305.00