Rupee registers fourth straight loss, settles at 283.8 against US dollar

The Pakistani rupee remained under pressure against the US dollar for the fourth successive session, depreciating 0.27% on Wednesday.

At close, the currency settled at 283.80, a decrease of Re0.76, as per the State Bank of Pakistan (SBP).

On Tuesday, the rupee sustained losses against the US dollar for the third successive session, depreciating 1.34% to settle at 283.04 in the inter-bank market.

In a key development, the International Monetary Fund (IMF) stressed a market-determined exchange rate.

The lender stated that reliance on administrative measures to manage imports since May 2022 and the tightly controlled exchange rate since September 2022 have caused significant damage to Pakistan’s growth and exacerbated external pressures by dissuading inflows, especially remittances.

Meanwhile, the government committed to the IMF that it would restrain non-priority spending including through energy sector measures aimed at credibly containing energy sector subsidies, the public wage bill, and pensions.

Internationally, the US dollar held just above an over one-year low on Wednesday as traders assessed the US rate outlook.

The US dollar managed to nudge up after a mixed retail sales report overnight, with sales growth missing forecasts in June but consumers boosted or maintained spending elsewhere, pointing to consumer resilience that is likely to keep the economy on a solid growth path.

Against a basket of currencies, the US dollar rebounded from a 15-month low hit in the previous session, with its index steadying at 99.943 in early Asia trade.

Oil prices, a key indicator of currency parity, were little changed on Wednesday as markets weighed US demand concerns against China’s pledge to support economic growth.

Inter-bank market rates for dollar on Wednesday

BID Rs 283.70

OFFER Rs 284.00

Open-market movement

In the open market, the PKR remained unchanged for both buying and selling against USD, closing at 287.00 and 290.00, respectively.

Against Euro, the PKR remained unchanged for both buying and selling, closing at 317.00 and 320.00, respectively.

Against UAE Dirham, the PKR remained unchanged for both buying and selling, closing at 78.50 and 79.25, respectively.

Against Saudi Riyal, the PKR lost 20 paisa for both buying and selling, closing at 76.00 and 76.70, respectively.

Open-market rates for dollar on Wednesday

BID Rs 287.00

OFFER Rs 290.00