Rupee registers major recovery, settles at 284.42 against US dollar
- Currency appreciates 1.2% in the inter-bank market
Reports of expected inflows from Saudi Arabia helped the Pakistani rupee register significant gains against the US dollar as the currency climbed 1.21% in the inter-bank market on Thursday.
As per the State Bank of Pakistan (SBP), the rupee closed at 284.42, an increase of Rs3.43.
This comes a day after the rupee hit a new record low of 287.85 in the inter-bank market after a decline of Re0.56 or 0.19%.
In a key development, Saudi Arabia has assured the International Monetary Fund (IMF) that it will provide a $2 billion loan to Pakistan, said Minister of State for Finance Aisha Ghaus Pasha.
However, the IMF agreement still rests on a similar commitment from the United Arab Emirates for a $1 billion loan, she added.
The resumption of the IMF programme, stalled since last year, is crucial for the debt-ridden South Asian economy.
Globally, the US dollar gained slightly on Thursday but hasn’t strayed too far from a recent two-month low as traders weighed how pivotal US jobs data coming out during a holiday weekend will impact Federal Reserve policy.
The list of soft economic data has added to fears of an impending recession in the world’s largest economy, putting a lid on risk appetite and sending traders in search of some safe-haven assets.
The US dollar index was up 0.1% at 101.95, having slid to a two-month trough of 101.40 in the previous session.
Oil prices, a key indicator of currency parity, fell on Thursday as weak US economic data raised concerns over a potential global recession and demand reduction, but benchmark prices were headed for a weekly advance after OPEC+ announced further output cuts and US oil stocks dropped.
Inter-bank market rates for dollar on Thursday
BID Rs 284.25
OFFER Rs 287.00
Open-market movement
In the open market, the PKR gained 1 rupee for both buying and selling against USD, closing at 291.50 and 294.50, respectively.
Against Euro, the PKR gained 4 rupees for both buying and selling, closing at 314 and 317 respectively.
Against UAE Dirham, the PKR lost 10 paisa for buying and remained unchanged for selling, closing at 79.30 and 80.00, respectively.
Against Saudi Riyal, the PKR gained 90 paisa for both buying and selling, closing at 76.80 and 77.50, respectively.
Open-market rates for dollar on Thursday
BID Rs 291.50
OFFER Rs 294.50
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