Rupee slips against US dollar, settles at 283.79

The Pakistani rupee registered a marginal drop against the US dollar, depreciating 0.05% in the inter-bank market on Friday.

As per the State Bank of Pakistan (SBP), the rupee settled at 283.79, a loss of Re0.13.

A day earlier, the rupee was slightly up against the US dollar, closing at 283.66 in the inter-bank market, an increase of Re0.26 or 0.09%.

In a key development, Federal Minister for Finance and Revenue Ishaq Dar on Thursday said “all technical-level discussions with the International Monetary Fund (IMF)” are over.

“The IMF is demanding what was committed during the fifth and sixth review of the bailout,” Dar said. “The lender wants guarantees of three billion dollars from the UAE and Saudi Arabia,” the finance minister told the Senate.

Moreover, foreign exchange reserves held by the State Bank of Pakistan (SBP) decreased $354 million, clocking in at $4.2 billion as of March 24, data released on Thursday showed.

This was the first decline in central bank-held reserves on a weekly basis after six successive increases. The overall number stands at a critical level of around a month of import cover.

Globally, the US dollar tracked toward a second consecutive quarterly loss on Friday, as investors see US interest rates close to peaking and expect the dollar’s yield advantage is in decline.

A modest boost from a rush to safety around mid-March as banking jitters hit global markets seems to be fading, and the dollar index is down 1.3% for the quarter.

Through March, US interest rate markets dramatically repriced the outlook and now see a roughly 40% chance that the Federal Reserve is finished with rate increases. Fed funds futures have priced rate cuts by year’s end.

Oil prices, a key indicator of currency parity, dipped on Friday, with benchmarks heading for their weakest monthly performances since November, ahead of key US inflation data which could give clues on future interest rate moves and the strength of the dollar.

Inter-bank market rates for dollar on Friday

BID Rs 283.75

OFFER Rs 286.25

Open-market movement

In the open market, the PKR remained unchanged for both buying and selling against USD, closing at 284 and 287, respectively.

Against Euro, the PKR lost 2 rupees for both buying and selling, closing at 308 and 311 respectively.

Against UAE Dirham, the PKR lost 10 paisa for both buying and selling, closing at 77.10 and 77.80, respectively.

Against Saudi Riyal, the PKR remained unchanged for buying and selling, closing at 75.70 and 76.30, respectively.

Open-market rates for dollar on Friday

BID Rs 284

OFFER Rs 287