Inter-bank: rupee ends 10-session losing streak against US dollar after 0.02% gain

The Pakistani rupee ended its 10-session depreciation run against the US dollar, and recorded a marginal gain to settle at 305.47 on Friday.

At close, the rupee was up Re0.07 or 0.02%, as per the State Bank of Pakistan (SBP).

On Thursday, the rupee had closed at the then-record low of 305.54 against the US dollar in the inter-bank market.

In a key development, the State Bank of Pakistan (SBP) on Friday rejected reports making rounds in media about holding an emergency meeting of the Monetary Policy Committee (MPC), terming them as “completely baseless”.

The central bank said that it would be “premature to forecast the future policy rate as only the MPC, which is an independent statutory body, is empowered to decide about the policy rate”.

The next meeting of the MPC is scheduled to be held on September 14, 2023.

Internationally, the US dollar was on course to snap a six-week winning streak against major peers on Friday, as it headed into a pivotal monthly U.S. jobs report that is likely to inform the path for Federal Reserve policy over coming months.

A parade of employment and inflation data has paved the way to the nonfarm payrolls report later in the global day, and much of it has been on the weaker side, leading traders to pare bets for a rate hike on Sept. 20 to 12% from 18% a week ago, according to the CME Group’s FedWatch tool.

The US dollar index - which measures the currency against a basket of six developed-market peers, including the euro, sterling and yen - edged 0.05% lower to 103.58 on Friday, bringing declines this week to 0.53%.

Oil prices, a key indicator of currency parity, hovered above $87 a barrel as crude prices looked set to set to snap a two-week losing streak on Friday, buoyed by expectations of tightening supplies.

Inter-bank market rates for dollar on Friday

BID                            Rs 305.45

OFFER                      Rs 305.65

Open-market movement

In the open market, the PKR lost 5.00 rupees for both buying and selling against USD, closing at 325.00 and 328.00, respectively.

Against Euro, the PKR remained unchanged for buying and PKR lost 50 paisa for selling, closing at 350.00 and 353.00, respectively.

Against UAE Dirham, the PKR lost 50 paisa for both buying and selling, closing at 89.70 and 90.50, respectively.

Against Saudi Riyal, the PKR lost 1.00 rupee for both buying and selling, closing at 87.20 and 88.00, respectively.

Open-market rates for dollar on Friday

BID                            Rs 325.00

OFFER                      Rs 328.00