Rupee slips lower, settles at 286.93 against US dollar

The Pakistani rupee registered a marginal decline against the US dollar with a depreciation of 0.04% in the inter-bank market on Friday.

At close, the currency settled at 286.93, a decrease of Re0.12, as per the State Bank of Pakistan (SBP).

In the open market, the PKR was being traded in the range of 304-306 against the US dollar.

On Thursday, the rupee ended its four-session losing streak against the US dollar, to settle at 286.81, up by 0.07% against the US dollar in the inter-bank.

In a key development, Finance Minister Ishaq Dar on Thursday said the newly elected government should negotiate a fresh deal with the International Monetary Fund (IMF).

His remarks came during the question-and-answer session following the unveiling of the Economic Survey 2022-23.

“We are hopeful the ninth review is completed successfully, as it is necessary for Pakistan. After this, it will be only fair that it be the prerogative of a new government, after elections, to negotiate any new programme with the IMF.

“At this stage, it would be totally undemocratic and unfair to initiate negotiations on a new programme. Let whoever (wins the election) be the one to decide. They shouldn’t be bound,” said Dar.

Stalled bailout: IMF says govt has to satisfy it on 3 counts, starting with budget

Globally, the US dollar retreated on Friday, dragged by lower US Treasury yields after a spike in weekly jobless claims raised traders’ hopes that a peak in US interest rates was near, as focus turned to the upcoming week packed with central bank meetings.

The number of Americans filing new claims for unemployment benefits surged to the highest in more than 1-1/2 years last week, data on Thursday showed, though layoffs are probably not accelerating as the data covered the Memorial Day holiday, which could have injected some volatility.

The dollar index last stood at 103.35 in early Asia trade on Friday, having lost more than 0.7% in the previous session, its largest daily decline in weeks.

Oil prices, a key indicator of currency parity, rose on Friday and were broadly flat on the week as concern over oil demand growth was balanced by Saudi output cuts.

Inter-bank market rates for dollar on Friday

BID Rs 286.80

OFFER Rs 286.95

Open-market movement

In the open market, the PKR remained unchanged for both buying and selling against USD, closing at 302.00 and 305.00, respectively.

Against Euro, the PKR remained unchanged for both buying and selling, closing at 319.00 and 322.00 respectively.

Against UAE Dirham, the PKR gained 20 paisa for both buying and selling, closing at 83.00 and 83.80, respectively.

Against Saudi Riyal, the PKR lost 70 paisa for buying and 80 paisa for selling, closing at 80.00 and 80.80, respectively.

Open-market rates for dollar on Friday

BID Rs 302.00

OFFER Rs 305.00