Rupee back to winning ways, settles at 261.9 against US dollar

The Pakistani rupee was back to winning ways against the US dollar, as the currency settled with a gain of 0.23% in the inter-bank market on Wednesday.

As per the State Bank of Pakistan (SBP), the currency closed at 261.90 against the US dollar, an increase of Re0.61. Despite the gain, the currency has depreciated 21.4% during the ongoing fiscal year against the greenback.

The Pakistani rupee’s five-session positive run had earlier come to an end against the US dollar on Tuesday after it settled at 262.51 with depreciation of Re0.63 or 0.24%.

In a key development, Pakistan expects to conclude talks with the International Monetary Fund (IMF) over a staff-level agreement as soon as this week, the country’s finance secretary said, in a crucial step towards unlocking funds to battle an economic crisis.

“The consultations with the IMF are in the final stages. We expect to conclude the consultations soon, even within the week,” Hamed Yaqoob Sheikh, the top official in the finance ministry, told Reuters.

Globally, the dollar and sterling were buoyant on Wednesday, after a surprise rebound in business activity in the United States and the UK raised the likelihood that their respective central banks would have further to go in raising interest rates.

The rebound in US business activity comes on the back of a recent slew of resilient economic data pointing to a still-tight labour market, sticky inflation and robust retail sales in the world’s largest economy.

The US dollar index stood at 104.13, having gained 0.3% on Tuesday.

Oil prices, a key indicator of currency parity, fell for a third trading session on Wednesday on expectations the US Federal Reserve will indicate later in the day that interest rates are set to rise more, stoking concerns of lower global economic growth and demand for fuel.

Inter-bank market rates for dollar on Wednesday

BID Rs 261.90

OFFER Rs 263.90

Open-market movement

In the open market, the PKR remained unchanged for buying and selling against USD, closing at 266.00 and 269.00, respectively.

Against Euro, the PKR lost 1.50 rupee for buying and selling, closing at 280.50 and 283.50 respectively.

Against UAE Dirham, the PKR lost 20 paisa for buying and selling, closing at 73.20 and 73.90, respectively.

Against Saudi Riyal, the PKR remained unchanged for buying and lost 10 paisa for selling, closing at 70.70 and 71.40, respectively.

Open-market rates for dollar on Wednesday

BID Rs 266

OFFER Rs 269