Inter-bank: rupee ends appreciation run against US dollar

The Pakistani rupee ended its five-session appreciation run against the US dollar as it lost 0.05% in the inter-bank market on Thursday.

As per the State Bank of Pakistan (SBP), the rupee settled at 285.27, a decrease of Re0.66.

On Wednesday, the rupee registered gains to settle at 285.13 against the US dollar.

In a key development, the Federal Board of Revenue (FBR) has given a deadline of November 30, 2023, to banks for payment of 40% additional tax on windfall income, profits, and gains during calendar years 2021 and 2022.

Globally, the currency markets were lulled by holidays in Japan and the United States on Thursday, leaving the US dollar revelling in its gains after data that cast doubts over market projections for peak Fed rates.

With markets shut in Japan and the United States for the Thanksgiving holiday, currencies barely moved and cash US Treasuries weren’t traded in Asia.

The dollar index rose overnight, bouncing from a 2-1/2 month low, after economic data showed the number of Americans filing new claims for unemployment benefits fell more than expected last week.

At the same time, orders for long-lasting US manufactured goods fell more than expected in October, signalling an economy cooling considerably after hot third-quarter growth.

Oil prices, a key indicator of currency parity, dipped roughly 1% on Thursday, extending losses from the previous session, after OPEC+ postponed a meeting, triggering speculation that the group may not deepen output cuts next year due to dissenting African members.

Brent futures were down 85 cents, or about 1%, at $81.11 a barrel by 0916 GMT, after falling as much as 4% on Wednesday.

US West Texas Intermediate crude slid 71 cents, also about 1%, to $76.39, after declining as much as 5% in the previous session.

Inter-bank market rates for dollar on Thursday

BID                            Rs 285.25

OFFER                      Rs 285.45

Open-market movement

In the open market, the PKR gained 50 paisa for both buying and selling against USD, closing at 283.00 and 286.00, respectively.

Against Euro, the PKR remained unchanged for both buying and selling, closing at 308.00 and 311.00, respectively.

Against UAE Dirham, the PKR gained 20 paisa for buying and 30 paisa for selling, closing at 77.30 and 78.00, respectively.

Against the Saudi Riyal, the PKR remained unchanged for both buying and selling, closing at 75.50 and 76.30, respectively.

Open-market rates for dollar on Thursday

BID                            Rs 283.00

OFFER                      Rs 286.00