Rupee claws back some ground, settles at 287.18 against US dollar

After three consecutive losses, the Pakistani rupee gained some ground against the US dollar with an appreciation of 0.28% in the inter-bank market on Wednesday.

At close, the currency settled at 287.18, an increase of Re0.79, as per the State Bank of Pakistan (SBP).

On Tuesday, the Pakistani rupee witnessed losses for the third consecutive session against the US dollar to settle at 287.97, down by 0.12% against the US dollar in the inter-bank.

In a key development, Minister of State for Finance Dr Aisha Ghaus Pasha on Tuesday reiterated that Pakistan would neither go the Paris Club nor would it default on payments to multilateral, international agencies or commercial banks.

Her remarks come as Pakistan seeks resumption of the International Monetary Fund (IMF) programme, which remains stalled since November last year, as default fears looms over the country.

Globally, the US dollar fell to near a three-week low to the euro and a one-month low versus sterling on Wednesday, after unexpectedly soft US inflation data cemented the view that the Federal Reserve will skip an interest rate hike later in the day.

The US consumer price index (CPI) edged up just 0.1% last month, and notched its smallest year-on-year increase since March 2021 at 4.0%.

The dollar index - which measures the currency against six major peers, including the euro and sterling - was little changed at 103.29 in early Asian trading, after dipping to the lowest since May 22 overnight at 103.04.

Oil prices, a key indicator of currency parity, rose on Wednesday as investors awaited the outcome of the US Federal Reserve’s June meeting after bullish oil demand growth forecasts from the International Energy Agency (IEA) and OPEC.

Inter-bank market rates for dollar on Wednesday

BID Rs 287.10

OFFER Rs 287.20

Open-market movement

In the open market, the PKR gained 4 rupees for both buying and selling against USD, closing at 291.00 and 294.00, respectively.

Against Euro, the PKR gained 6 rupees for both buying and selling, closing at 312.00 and 315.00 respectively.

Against UAE Dirham, the PKR gained 1.20 rupee for buying and 1.30 rupee for selling, closing at 80.80 and 81.50, respectively.

Against Saudi Riyal, the PKR gained 1 rupee for both buying and selling, closing at 77.30 and 78.00, respectively.

Open-market rates for dollar on Wednesday

BID Rs 291.00

OFFER Rs 294.00