Rupee weakens marginally, settles at 287.60 against US dollar

The Pakistani rupee saw a marginal decline against the US dollar with a depreciation of 0.05% in the inter-bank market on Thursday.

At close, the currency settled at 287.6, a decrease of Re0.14, as per the State Bank of Pakistan (SBP).

On Wednesday, the Pakistani rupee saw slight improvement against the US dollar and appreciated 0.16% to settle at 287.46.

In a key development, the Senate Standing Committee on Finance, Wednesday, held that targeted Letters of Credit (LCs) issuance is discriminating against the manufacturers and directed the State Bank of Pakistan (SBP) to provide a level playing field to all the stakeholders.

The committee has shown displeasure over delay and interference in the opening of LCs.

Globally, the US dollar held near the centre of its range this week against a basket of major peers, as investors awaited key US inflation data later Thursday that could influence the path for Federal Reserve policy.

The US currency edged to a one-month high versus the yen as markets took the view that the Bank of Japan will be slow to exit stimulus, even with traders mostly betting the Fed is done with rate hikes.

The dollar has benefited from safe-haven demand in the wake of an ongoing run of poor Chinese economic data, while the narrative continues to build for a soft landing for the US economy as price pressures mitigate.

The US dollar index - which measures the currency against six counterparts, including the euro and yen - was little changed at 102.50 in the Asian morning, after trading roughly between 101.98 and 102.80 this week.

Oil prices, a key indicator of currency parity, steadied on Thursday as investor caution ahead of US inflation data softened a protracted price rally on supply tightness.

Inter-bank market rates for dollar on Thursday

BID Rs 287.55

OFFER Rs 287.75

Open-market movement

In the open market, the PKR remained unchanged for both buying and selling against USD, closing at 291.75 and 294.75, respectively.

Against Euro, the PKR remained unchanged for both buying and selling, closing at 320.00 and 323.00, respectively.

Against UAE Dirham, the PKR remained unchanged for both buying and selling, closing at 81.50 and 82.30, respectively.

Against Saudi Riyal, the PKR gained 20 paisa for both buying and selling, closing at 77.60 and 78.30, respectively.

Open-market rates for dollar on Thursday

BID Rs 291.75

OFFER Rs 294.75