3rd straight fall: rupee settles at 289.38 against US dollar

The Pakistani rupee registered a loss for the third straight session against the US dollar as it depreciated 0.64% on Wednesday.

At close, the rupee settled at 289.38, a decrease of Rs1.84, as per the State Bank of Pakistan (SBP).

On Monday, the rupee had registered back-to-back losses against the dollar to depreciate 0.31% to settle at 287.54.

Experts attributed the rise in US dollar value to demand-supply pressure in the market.

“The ease in import restrictions is driving demand for US dollar,” Samiullah Tariq, Head of Research at Pak Kuwait Investment Company Limited, told Business Recorder.

The expert said the greenback is expected to remain range bound, and would trade in the range of 285-290.

In a key development, the Federal Board of Revenue (FBR) provisionally collected Rs538 billion during July 2023 against the assigned monthly target of Rs534 billion, reflecting an increase of Rs4 billion.

Globally, the US dollar struggled to make headway on Wednesday after a cut on the US government’s top credit rating by Fitch raised questions about the country’s fiscal outlook, though it drew some support from a relatively resilient run of economic data.

Ratings agency Fitch on Tuesday downgraded the United States to AA+ from AAA in a move that drew an angry response from the White House and surprised investors, coming despite the resolution two months ago of the debt ceiling crisis.

The US dollar index was last 0.09% higher at 102.09, after slipping broadly in the wake of the Fitch news.

Oil prices, a key indicator of currency parity, surged on Wednesday, trading near their highest levels since April, buoyed by crude and fuel product inventory data showing robust US demand. Brent crude futures for October were up 44 cents, or 0.5%, to $85.35 a barrel.

Inter-bank market rates for dollar on Wednesday

BID Rs 289.30

OFFER Rs 289.50

Open-market movement

In the open market, the PKR lost 1.50 rupee for both buying and selling against USD, closing at 289.50 and 292.50, respectively.

Against Euro, the PKR lost 1.00 rupee for both buying and selling, closing at 319.00 and 322.00, respectively.

Against UAE Dirham, the PKR remained unchanged for buying and 10 paisa for selling, closing at 81.00 and 81.80, respectively.

Against Saudi Riyal, the PKR lost 1.00 rupee for both buying and selling, closing at 77.50 and 78.20, respectively.

Open-market rates for dollar on Wednesday

BID Rs 289.50

OFFER Rs 292.50