Inter-bank market: rupee sees minor gain against US dollar

The Pakistani rupee witnessed a slight recovery against the US dollar to settle at 306.98 in the inter-bank market on Wednesday.

At close, the rupee was up Re0.12 or 0.04%, as per the State Bank of Pakistan (SBP).

On Tuesday, the rupee sustained back-to-back losses against the US dollar to settle at record low 307.10, a depreciation of 0.48%, in the inter-bank market.

In a key development, Country Director World Bank Najy Benhassine called on Caretaker Federal Minister for Finance, Revenue, Economic Affairs, and Privatization Dr Shamshad Akhtar, at the Finance Division on Tuesday.

During the meeting, Akhtar underscored the caretaker government’s commitment to successfully fulfilling its obligations under the International Monetary Fund (IMF) programme and timely completion of all ongoing development projects.

Internationally, the US dollar perched near a six-month peak on Wednesday as jitters over China and global growth dragged on risk sentiment drawing the strongest warning since mid-August from Japan’s top currency diplomat.

Economic data from China and Europe on Tuesday fanned some fears of slowing global growth, pushing investors to scramble for the dollar.

Against a basket of currencies, the dollar rose 0.067% to 104.80, not far off the six-month high of 104.90 it touched overnight.

Oil prices, a key indicator of currency parity, reversed course on Wednesday after rising over 1% in the previous session, on a firmer dollar and as investors shrugged off jitters arising from supply cuts from Saudi Arabia and Russia.

Inter-bank market rates for dollar on Wednesday

BID                            Rs 306.95

OFFER                      Rs 307.15

Open-market movement

In the open market, the PKR gained 11.00 rupees for both buying and selling against USD, closing at 309.00 and 312.00, respectively.

Against Euro, the PKR gained 8.00 rupees for buying and 8.50 rupees for selling, closing at 332.00 and 335.00, respectively.

Against UAE Dirham, the PKR gained 2.00 rupees for both buying and selling, closing at 86.00 and 86.80, respectively.

Against Saudi Riyal, the PKR gained 2.70 rupees for both buying and selling, closing at 82.50 and 83.30, respectively.

Open-market rates for dollar on Wednesday

BID                            Rs 309.00

OFFER                      Rs 312.00