New low in inter-bank: rupee settles at 305.54 against US dollar after 10th successive decline

The Pakistani rupee’s downward trajectory continued as it dropped to yet another record low against the US dollar, settling at 305.54 in the inter-bank market on Thursday.

At close, the rupee was down Rs1.09 or 0.36%, as per the State Bank of Pakistan (SBP). This was its 10th successive fall in the inter-bank market.

On Wednesday, the rupee had closed at the then-record low of 304.45 against the US dollar in the inter-bank market.

Caretaker Finance Minister Dr Shamshad Akhtar on Wednesday told the Senate Standing Committee on Finance meeting presided over by Senator Saleem Mandviwalla that the caretaker government does not have the fiscal space for subsidies but added that the proposal was under consideration to withdraw electricity to privileged ones.

The Senate committee expressed concerns over the growing exchange rate fluctuations, unprecedented electricity cost, and 22 per cent interest rate that are making it challenging for current businesses to survive and thrive.

Globally, the US dollar was squeezed ahead of consumption, inflation and jobs data that could add to evidence of a softening economy.

US payrolls data is due on Friday, and the dollar has been under pressure as second-tier figures this week such as job openings and private payrolls have pointed to softness.

Overnight the Commerce Department revised down second-quarter growth to 2.1% from an estimate of 2.4%.

The dollar index, while still up more than 1% for August, has fallen 1% for the week so far as traders reckon U.S. interest rates may have stopped rising - even if they stay high.

Oil prices, a key indicator of currency parity, eased on Thursday after data showed China’s manufacturing activity shrank for the fifth month in a row, and as investors cautiously awaited a US personal consumption expenditure report later in the day for any clues on the interest rate outlook.

Inter-bank market rates for dollar on Thursday

BID Rs 305.50

OFFER Rs 305.70

Open-market movement

In the open market, the PKR lost 3.50 rupees for both buying and selling against USD, closing at 320.00 and 323.00, respectively.

Against Euro, the PKR lost 7.00 rupees for both buying and selling, closing at 350.00 and 353.00, respectively.

Against UAE Dirham, the PKR lost 1.70 rupee for both buying and selling, closing at 89.20 and 90.00, respectively.

Against Saudi Riyal, the PKR lost 1.20 rupee for both buying and selling, closing at 86.20 and 87.00, respectively.

Open-market rates for dollar on Thursday

BID Rs 320.00

OFFER Rs 323.00