The Pakistani rupee remained largely unchanged against the US dollar during trading in the inter-bank market on Wednesday.

According to the State Bank of Pakistan (SBP), the local currency settled at 283.89, an increase of Re0.01.

The development comes after the rupee regained some ground against the US dollar on Tuesday, settling at 283.9 in the inter-bank market, and as market participants await the resumption of the International Monetary Fund (IMF) Extended Fund Facility (EFF), which has remained stalled since last year.

Experts say the increase in inflows from workers’ remittances and a decline in import payments have reduced demand for US dollars.

Globally, the dollar steadied on Wednesday after it seesawed with bond market volatility as investors scrutinised US economic indicators, Federal Reserve commentary and corporate earnings for clues about the path for interest rates.

The dollar index - which gauges the greenback against six major peers - ticked up 0.11% to 101.83 in Asian trading, following a 0.36% slide on Tuesday that reversed the 0.54% rally of the session before.

Oil prices, a key indicator of currency parity, dropped on Wednesday as the market weighed potential interest rate hikes from the US Federal Reserve that could slow growth and dampen oil consumption, offsetting falling US inventories and strong Chinese economic data.

Inter-bank market rates for dollar on Wednesday

BID Rs 283.90

OFFER Rs 286.00

Open-market movement

In the open market, the PKR lost 1 rupee for both buying and selling against USD, closing at 286 and 289, respectively.

Against Euro, the PKR lost 1 rupee for both buying and selling, closing at 310 and 313 respectively.

Against UAE Dirham, the PKR remained unchanged for both buying and selling, closing at 77.30 and 78.00, respectively.

Against Saudi Riyal, the PKR lost 40 paisa for buying and 30 paisa for selling, closing at 75.70 and 76.30, respectively.

Open-market rates for dollar on Wednesday

BID Rs 286

OFFER Rs 289