Rupee sees marginal improvement, settles at 287.46 against US dollar

The Pakistani rupee saw slight improvement against the US dollar with an appreciation of 0.16% in the inter-bank market on Wednesday.

At close, the currency settled at 287.46, an increase of Re0.45, as per the State Bank of Pakistan (SBP).

On Tuesday, the Pakistani rupee had weakened against the US dollar and depreciated 0.17% to settle at 287.91.

In a key development, the Economic Coordination Committee (ECC) on Tuesday approved the proposed revised features of the SME Asaan Finance (SAAF) scheme as proposed by State Bank of Pakistan (SBP) with risk sharing facility of Rs12 billion for the government with Rs4 billion for 2023-24 and Rs7 billion for 2024-25.

Internationally, the US dollar remained on the frontfoot in Asia on Wednesday, holding on to overnight gains against major peers as investors sought the safety of the currency amid risks from a floundering Chinese economy and downgrades for US banks.

Worries about the global economy flared again after data on Tuesday showed Chinese imports and exports contracting faster than expected in July.

Data on Wednesday showed China’s consumer prices fell for the first time in more than two years in July, fanning deflation fears, although the decline of 0.3% was slightly less than forecast in a Reuters poll.

The US dollar index - which measures the currency against the euro, yen and four other counterparts - was little changed at 102.50 in the Asian morning, following a 0.47% rise in the previous session.

Oil prices, a key indicator of currency parity, hit new peaks on Wednesday with Brent crude touching the highest since April as tighter supply owing to Saudi and Russian output cuts offset concerns over slow demand from China and a report showing rising U.S. crude inventories.

Inter-bank market rates for dollar on Wednesday

BID Rs 287.40

OFFER Rs 287.60

Open-market movement

In the open market, the PKR gained 25 paisa for both buying and selling against USD, closing at 291.50 and 294.50, respectively.

Against Euro, the PKR remained unchanged for both buying and selling, closing at 320.00 and 323.00, respectively.

Against UAE Dirham, the PKR remained unchanged for both buying and selling, closing at 81.50 and 82.30, respectively.

Against Saudi Riyal, the PKR remained unchanged for both buying and selling, closing at 77.80 and 78.50, respectively.

Open-market rates for dollar on Wednesday

BID Rs 291.50

OFFER Rs 294.50