Inter-bank market: rupee’s merry run continues against US dollar

The Pakistani rupee continued its merry run against the US dollar, appreciating for the third consecutive session to settle at 302.95 in the inter-bank market on Friday.

At close, the rupee was up Rs1.99 or 0.66%, as per the State Bank of Pakistan (SBP). Cumulatively, the rupee has appreciated 1.4% in the last three sessions. Its increase in the open market, however, has been much more drastic.

On Thursday, the rupee had strengthened 0.67% to settle at 304.94 in the inter-bank market.

In a key development, the top military brass on Thursday reiterated to continue full support of ongoing efforts in uplifting socioeconomic growth under the umbrella of Special Investment Facilitation Council (SIFC) and assisting the caretaker government in curbing all illegal activities which hamper economic stability, growth and investors’ confidence.

In a related development, currency dealers, while lauding the role of Chief of Army Staff (COAS) Asim Munir, informed that Exchange Companies (ECs) have surrendered $20 million to the inter-bank market during the last two days as there is no demand in the market.

Internationally, the US dollar was headed for its longest weekly winning streak in nine years on Friday, bolstered by a resilient run of US economic data that has also put the end of the Federal Reserve’s rate-hike cycle into question.

The US dollar index, which measures the greenback against its major peers, steadied at 105.02 in early trade, not far from the previous session’s six-month high of 105.15.

The index was on track to extend its gains into an eighth straight week, and is up 0.7% so far.

Oil prices, a key indicator of currency parity, were stable on Friday, as investors weighed fears about the health of China’s economy against supply cuts from major producers Saudi Arabia and Russia.

Inter-bank market rates for dollar on Friday

BID                            Rs 302.90

OFFER                      Rs 303.10

Open-market movement

In the open market, the PKR gained 3.00 rupees for both buying and selling against USD, closing at 301.00 and 304.00, respectively.

Against Euro, the PKR gained 1.50 rupee for buying and 2.00 rupees for selling, closing at 322.00 and 325.00, respectively.

Against UAE Dirham, the PKR gained 1.00 rupee for both buying and selling, closing at 84.50 and 85.30, respectively.

Against Saudi Riyal, the PKR lost 50 paisa for both buying and selling, closing at 80.00 and 80.80, respectively.

Open-market rates for dollar on Friday

BID                            Rs 301.00

OFFER                      Rs 304.00