The Pakistani rupee ended its three-session winning streak against the US dollar as the currency registered a marginal depreciation of nearly 0.01% in the inter-bank market on Friday.
At close, the currency settled at 286.74, a decline of Re0.01, as per the State Bank of Pakistan (SBP).
On Thursday, the rupee had maintained its upward trajectory for the third successive session against the US dollar, appreciating 0.09% to settle at 286.73.
In a key development, Prime Minister Shehbaz Sharif on Thursday met Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF) on the sidelines of the Summit for a New Global Financial Pact being held in Paris amid hope that the lender approves the funds allocated under the bailout.
The resumption of the IMF programme, scheduled to end on June 30, is crucial for the cash-strapped economy.
Separately, Pakistan’s total liquid foreign exchange reserves fell by $515 million during the last week, mainly due to external debt servicing. However, Pakistan has received another inflow amounting to $ 300 million from China.
According to the State Bank of Pakistan (SBP), the total liquid foreign exchange reserves held by the country stood at $ 8.864 billion as of June 16, 2023 compared to $ 9.378 billion on June 6, 2023.
Internationally, the US dollar drew support from a bout of risk aversion on Friday as hawkish comments from global central banks, including the Federal Reserve, stoked fears that their aggressive monetary tightening could push economies into a deeper downturn.
While higher rates are typically supportive of currencies, the risk that they will trigger an economic downturn has pushed some investors to seek safe-haven assets including the US dollar.
The US dollar index rose 0.25% to 102.65 and was on track for a weekly gain, reversing three straight weeks of losses.
Oil prices, a key indicator of currency parity, dropped for a second day on Friday and was heading for a weekly decline, as a UK interest rate hike added to concern over economic growth that outweighed lower US crude stocks and other signs of tighter supplies.
Inter-bank market rates for dollar on Friday
BID Rs 286.55
OFFER Rs 286.75
Open-market movement
In the open market, the PKR gained 1 rupee for both buying and selling against USD, closing at 288.00 and 291.00, respectively.
Against Euro, the PKR gained 1 rupee for both buying and selling, closing at 314.00 and 317.00 respectively.
Against UAE Dirham, the PKR gained 20 paisa for buying and 30 paisa for selling, closing at 79.30 and 80.00, respectively.
Against Saudi Riyal, the PKR gained 1 rupee for both buying and selling, closing at 75.00 and 75.75, respectively.
Open-market rates for dollar on Friday
BID Rs 288.00
OFFER Rs 291.00