11th consecutive gain: rupee settles at 293.88 against US dollar

The Pakistani rupee maintained its upward trajectory for the 11th consecutive session against the US dollar, appreciating 0.35% in the inter-bank market on Wednesday.

As per the State Bank of Pakistan (SBP), the rupee settled at 293.88 after an increase of Rs1.02 in the inter-bank market.

On Tuesday, the rupee had appreciated 0.36% to settle at 294.90.

The rupee has been on an upward trajectory in recent days and has strengthened nearly 4.5% after hitting a record low of 307.1 in the inter-bank market on September 5.

The change in fortune comes as State Bank of Pakistan (SBP) introduced structural reforms in the Exchange Companies’ (ECs) sector and authorities reportedly initiated crackdown on smuggling, lending support to the currency markets.

Internationally, the US dollar remained firm on Wednesday but softened slightly against the yen ahead of a much-anticipated rate decision by the Federal Reserve later in the day.

The US dollar index, which measures the greenback against a basket of rivals, stayed mostly flat at 105.13 as traders awaited the Fed’s rate decision.

Markets expect the Fed will almost certainly keep rates on hold at 5.25% to 5.50%, putting the focus on the central bank’s forward guidance.

Oil prices, a key indicator of currency parity, fell nearly $1 on Wednesday ahead of the US Federal Reserve’s interest rate decision, with investors uncertain when peak rates will be hit and how much of an impact it will have on energy demand.

Prices fell despite a bigger-than-expected draw in US oil stockpiles and weak US shale output that indicated tight crude supply for the rest of 2023.

Inter-bank market rates for dollar on Wednesday

BID Rs 294.85

OFFER Rs 294.05

Open-market movement

In the open market, the PKR lost 1.00 rupee for both buying and selling against USD, closing at 294.00 and 297.00, respectively.

Against Euro, the PKR lost 2.00 rupees for both buying and selling, closing at 317.00 and 320.00, respectively.

Against UAE Dirham, the PKR lost 30 paisa for both buying and selling, closing at 82.00 and 82.80, respectively.

Against Saudi Riyal, the PKR remained unchanged for both buying and selling, closing at 78.80 and 79.50, respectively.

Open-market rates for dollar on Wednesday

BID Rs 294.00

OFFER Rs 297.00