Inter-bank: rupee continues to fall, declines for 13th consecutive session

The Pakistani rupee registered losses against the US dollar for the 13th consecutive session as it depreciated 0.18% in the inter-bank market on Wednesday.

As per the State Bank of Pakistan (SBP), the rupee settled at 286.90, a decrease of Re0.51.

On Tuesday, the rupee had depreciated 0.38% to settle at 286.39 against the US dollar.

In a related development, Pakistan and the International Monetary Fund (IMF) are likely to initiate policy-level talks from 13th November (Monday) onwards.

Caretaker Finance Minister Dr Shamshad Akhtar told the media on Monday that she is optimistic about the success of talks with the IMF on the first review while responding to questions outside the Finance Ministry.

She added that talks are progressing positively as all the ministries and divisions have implemented the agreed targets and their performance is satisfactory.

Internationally, the US dollar regained its footing on Wednesday and inched higher after a slew of Federal Reserve speakers left the door open to further rate hikes, as traders looked to a speech from Chair Jerome Powell on the central bank’s future policy path.

The greenback, which tumbled last week in the wake of the Fed’s decision to hold its policy rate steady and on data pointing to a cooling US labour market, has found a floor as markets remain at odds over whether a peak in US rates has been reached and how soon the Fed could begin easing monetary conditions.

The US dollar index, which last week clocked its sharpest weekly fall in about four months, rose 0.03% to 105.57 and was on track for a weekly gain.

Oil prices, a key indicator of currency parity, remained under pressure on Wednesday after sliding to their lowest in more than three months in the previous session, slipping further on concern over waning demand in the United States and China.

Brent crude futures dipped 8 cents to $81.53 a barrel by 0914 GMT while US crude lost 20 cents to $77.17. Both had dropped on Tuesday to their lowest since July 24.

Inter-bank market rates for dollar on Wednesday

BID                            Rs 286.90

OFFER                      Rs 287.10

Open-market movement

In the open market, the PKR remained unchanged for both buying and selling against USD, closing at 284.50 and 287.50, respectively.

Against Euro, the PKR remained unchanged for both buying and selling, closing at 304.00 and 307.00, respectively.

Against UAE Dirham, the PKR gained 50 paisa for both buying selling, closing at 79.50 and 80.30, respectively.

Against Saudi Riyal, the PKR gained 20 paisa for both buying and selling, closing at 76.00 and 76.70, respectively.

Open-market rates for dollar on Wednesday

BID                            Rs 284.50

OFFER                      Rs 287.50