Pakistan's rupee gained some ground on Thursday, appreciating three paisas against the US dollar in the inter-bank market.

As per the State Bank of Pakistan (SBP), the PKR closed at 178.12 against the USD after a day-on-day appreciation of three paisas or 0.02%. On Wednesday, the PKR closed at 178.15, the weakest closing for the rupee against the US dollar in the inter-bank market.

Cumulatively, the rupee has depreciated over 11% CYTD and 13% on a FYTD basis against the US dollar.

Sixth review to be presented to IMF board on Jan 12: Pakistan's finance ministry

The marginal improvement comes after Finance Ministry spokesperson, Muzzammil Aslam, said that the sixth review of the Extended Fund Facility (EFF) would be presented to the International Monetary Fund (IMF) board on January 12.

“Previously, there were concerns about it getting delayed,” commented Fahad Rauf, Head of Research at Ismail Iqbal Securities Limited.

Against USD: Pakistan's rupee hits yet another low in inter-bank market

The expert informed that bond yields have declined by 15-25bps (3Y-10Y) while Wednesday's auction also witnessed handsome participation of Rs500 billion. The cut-off yields remained largely the same.

The rupee has been under pressure since May this year as Pakistan's bulging import bill take toll on the currency. The country's import bill jumped by 64% or $ 25.1 billion in the first four months of the current fiscal year from July to October, compared to $ 15.2 billion in the corresponding months last financial year.

The Ministry of Commerce in its reply to the Senate attributed the increase in import to a substantial increase in the prices of oil, gas, coal and food commodities in the international market.

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On the other hand, experts expressed concern over the rise in oil prices despite the Covid pandemic.

“This week, despite Omicron, oil prices surged by $5 and if measures are not taken to curb imports, the trade gap will bother,” warned Ex-Treasury Head Chase Manhattan Bank, Asad Rizvi.

WTI Crude Oil price was hovering close to $73 a barrel, up over $5 when compared with $68.2 per barrel at the start of the week.

Inter-bank market rates for dollar on Thursday

BID Rs 177.95

OFFER Rs 178.10

Open-market movement

In the open market, the PKR lost 10 paisas for both buying and selling against USD, closing at 179 and 180, respectively.

Against Euro, the PKR lost 1 rupee for both buying and selling, closing at 201 and 202.50, respectively.

Against UAE Dirham, the PKR lost 40 paisas for both buying and selling, closing at 50.60 and 51, respectively.

Against Saudi Riyal, the PKR lost 10 paisas for both buying and selling, closing at 47.10 and 47.50, respectively.

Open-market rates for dollar on Thursday

BID Rs 179

OFFER Rs 180