Rupee claws back, settles at 287.2 against US dollar after 0.76% gain

After three consecutive losses, the Pakistani rupee gained some ground against the US dollar with an appreciation of 0.76% in the inter-bank market on Thursday.

At close, the currency settled at 287.20, an increase of Rs2.18, as per the State Bank of Pakistan (SBP).

On Wednesday, the rupee had registered a loss for the third straight session against the US dollar and depreciated 0.64% to settle at 289.38.

In a key development, the Senate on Wednesday passed a law allowing the establishment of state-owned Pakistan Sovereign Wealth Fund to stabilise the country’s economy through diversification and to generate wealth for future generations.

Globally, the US dollar was perched near a four-week high on Thursday, shrugging off a US credit rating downgrade that cast doubt on the country’s fiscal outlook, and instead got a leg up from strong private payrolls data.

Data out on Wednesday showing US private payrolls rose more than expected in July boosted the greenback, as the figures pointed to continued labour market resilience which is likely to keep US rates higher for longer.

That sent the dollar index to its highest since July 7 in the previous session. It was last at 102.56, not far form Wednesday’s peak of 102.78.

Oil prices, a key indicator of currency parity, slid further on Thursday after dropping sharply from more than three-month highs in the previous session as a US government credit downgrade weighed on sentiment, while concerns around supply tightness provided support.

Inter-bank market rates for dollar on Thursday

BID Rs 287.20

OFFER Rs 287.40

Open-market movement

In the open market, the PKR remained unchanged for both buying and selling against USD, closing at 289.50 and 292.50, respectively.

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

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

Against Saudi Riyal, the PKR remained unchanged for both buying and selling, closing at 77.50 and 78.20, respectively.

Open-market rates for dollar on Thursday

BID Rs 289.50

OFFER Rs 292.50