Inter-bank: rupee records marginal decline against US dollar

The Pakistani rupee recorded a marginal decline against the US dollar with a depreciation of 0.07% in the inter-bank market on Thursday.

At close, the currency settled at 287.37, a decrease of Re0.19, as per the State Bank of Pakistan (SBP).

On Wednesday, the Pakistani rupee had gained some ground against the US dollar to settle at 287.18, up by 0.28% against the US dollar in the inter-bank.

In a key development, the International Monetary Fund (IMF) expressed its dissatisfaction with the budget proposals announced by Finance Minister Ishaq Dar for fiscal year 2023-24, calling them a missed opportunity to broaden the tax base while criticising the new amnesty scheme that “creates a damaging precedent”.

“The draft FY24 Budget misses an opportunity to broaden the tax base in a more progressive way,” Esther Perez Ruiz, the IMF Resident Representative for Pakistan, told Business Recorder via message on Thursday.

“The long list of new tax expenditures reduces further the fairness of the tax system and undercuts the resources needed for greater support for vulnerable (Benazir Income Support Programme) BISP recipients and development spending,” she added.

Her statement comes as the IMF programme remains scheduled to end on June 30, a day before the new budget measures come into force with the start of the new fiscal year in Pakistan.

Internationally, the US dollar rallied in Asian trading on Thursday after the Federal Reserve signalled rate hikes later in the year.

The market’s attention is now turning to other central bank decisions late this week.

The dollar index rose 0.28% to 103.21, recovering from a four-week low of 102.66 on Wednesday after the Fed held interest rates steady but signalled that borrowing costs would increase by another 50 basis points (bps) by end-December.

Oil prices, a key indicator of currency parity, were stable on Thursday, following a plunge on Wednesday, as the market balanced a jump in refinery runs at the world’s top crude importer China with a weak economic backdrop.

Inter-bank market rates for dollar on Thursday

BID Rs 287.30

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 292.00 and 295.00, respectively.

Against Euro, the PKR lost 1 rupee for both buying and selling, closing at 313.00 and 316.00 respectively.

Against UAE Dirham, the PKR gained 10 paisa for buying and remained unchanged for selling, closing at 80.70 and 81.50, respectively.

Against Saudi Riyal, the PKR lost 20 paisa for buying and 25 paisa for selling, closing at 77.50 and 78.25, respectively.

Open-market rates for dollar on Thursday

BID Rs 292.00

OFFER Rs 295.00