Inter-bank: rupee remains largely stable, settles at 278.8 against US dollar

The Pakistani rupee remained largely stable against the US dollar, as it appreciated 0.003% in the inter-bank market on Friday.

As per the State Bank of Pakistan (SBP), the rupee settled at 278.80 after an increase of Re0.01 in the inter-bank market.

On Thursday, the rupee staged a recovery against the US dollar, as it appreciated 0.53% to settle at 278.81.

In a related development, the country’s current account deficit declined to $8 million in September 2023 as compared to the current account deficit of $360 million in the same month in 2022.

The country’s current account deficit was $164 million in August 2023.

During the first three months of current fiscal year FY24 (from July 2023 to September 2023), the country’s current account deficit declined to $947 million as compared to $2.258 billion in the same period last year.

Moreover, the country’s foreign exchange reserves held by the State Bank of Pakistan (SBP) increased by $67 million on a weekly basis, clocking in at $7.7 billion as of October 13, data released on Thursday showed.

Internationally, the US dollar was within a hair’s breadth of the closely watched 150 yen level on Friday, buoyed by a surge in the US 10-year Treasury yield which in the previous session briefly reached 5% for the first time since 2007.

The benchmark 10-year yield, which was last at 4.9813%, has climbed some 35 basis points this week, driven by rising expectations that the Federal Reserve is likely to keep interest rates higher for longer and mounting US fiscal concerns.

The dollar index gained 0.08% to 106.29, though was on track for a weekly loss.

Oil prices, a key indicator of currency parity, extended gains on Friday and were on track to rise for a second week on heightened fears that the Israel-Gaza crisis may spread in the Middle East and disrupt supply from one of the world’s top-producing regions.

Inter-bank market rates for dollar on Friday

BID                            Rs 278.80

OFFER                      Rs 279.00

Open-market movement

In the open market, the PKR lost 50 paisa for both buying and selling against USD, closing at 277.50 and 280.50, respectively.

Against Euro, the PKR remained unchanged for both buying and selling, closing at 293.00 and 296.00, respectively.

Against UAE Dirham, the PKR remained unchanged for both buying and selling, closing at 77.00 and 77.75, respectively.

Against Saudi Riyal, the PKR remained unchanged for both buying and selling, closing at 74.50 and 75.20, respectively.

Open-market rates for dollar on Friday

BID                            Rs 277.50

OFFER                      Rs 280.50