Rupee sustains losses, settles at 277.41 against US dollar
- Currency depreciates 0.71% in inter-bank market
- Trades between 278 and 281 in open market
A day after witnessing massive gains, the Pakistani rupee recorded losses against the US dollar, depreciating 0.71% during trading on Wednesday.
At close, the currency settled at 277.41, a decrease of Rs1.97, as per the State Bank of Pakistan (SBP).
On Tuesday, the Pakistani rupee had made giant strides against the US dollar, appreciating 3.83% in the inter-bank market to settle at 275.44, an increase that came on the back of the agreement signed with the International Monetary Fund (IMF).
“A pullback is being seen after the rupee appreciated on Tuesday,” Tahir Abbas, Head of Research at Arif Habib Limited (AHL), told Business Recorder.
The expert said that the currency is expected to trade in the range of 275.
In a related development, Moody’s Investors Services on Tuesday said Pakistan government’s liquidity risks remain high despite the IMF’s staff-level agreement.
Internationally, the US dollar drifted near the middle of its range of the past three weeks against major peers on Wednesday, as traders looked ahead to the release of minutes from the Federal Reserve’s latest meeting for clues about the path for monetary policy.
The dollar index - which measures the currency against a basket of six major peers, including the euro and yen - was little changed at 103.02, after tracking between 103.75 and 102.75 since early June.
Oil prices, a key indicator of currency parity, edged lower on Wednesday as concern over a global economic slowdown overshadowed supply cuts announced this week by top crude exporters Saudi Arabia and Russia.
Inter-bank market rates for dollar on Wednesday
BID Rs 277.20
OFFER Rs 277.40
Open-market movement
In the open market, the PKR lost 1 rupee for both buying and selling against USD, closing at 278.00 and 281.00, respectively.
Against Euro, the PKR lost 5 rupees for both buying and selling, closing at 297.00 and 300.00 respectively.
Against UAE Dirham, the PKR gained 30 paisa for both buying and selling, closing at 75.00 and 75.70, respectively.
Against Saudi Riyal, the PKR lost 70 paisa for both buying for selling, closing at 73.00 and 73.70, respectively.
Open-market rates for dollar on Wednesday
BID Rs 278.00
OFFER Rs 281.00
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