8th successive gain: rupee settles at 296.85 against US dollar

The Pakistani rupee strengthened for the eighth successive session against the US dollar, appreciating 0.37% in the inter-bank market on Friday.

As per the State Bank of Pakistan (SBP), the rupee settled at 296.85 after an increase of Rs1.11 in the inter-bank market.

On Thursday, the rupee had appreciated 0.29% to settle at 297.96.

Meanwhile, the Monetary Policy Committee (MPC) of the SBP maintained the key policy rate at 22% as it projected inflation to remain on a downward trajectory in the future.

This is the second successive meeting in which the MPC has maintained status quo on the policy rate.

The MPC’s decision comes against wider market consensus that predicted a rate hike.

Internationally, the US dollar held steady in Asia on Friday, edging off slightly from overnight gains against peers, as the yuan strengthened in the wake of some market-beating economic data out of China.

The dollar jumped overnight after US retail sales received a boost from higher gasoline prices, increasing 0.6% in August versus an estimated 0.2% rise, while market participants reacted to the European Central Bank’s 25-basis point hike.

The US dollar index last stood somewhat lower at 105.32, but still near Thursday’s six-month peak of 105.43.

Oil prices, a key indicator of currency parity, rose on Friday and are set for a third weekly gain, as better-than-expected Chinese economic data and reports of record oil consumption bolstered the view that demand in the world’s second-largest crude consumer will continue to surge.

Inter-bank market rates for dollar on Friday

BID                            Rs 296.80

OFFER                      Rs 297.00

Open-market movement

In the open market, the PKR gained 1.00 rupee for both buying and selling against USD, closing at 294.00 and 297.00, respectively.

Against Euro, the PKR gained 1.00 rupee for both buying and selling, closing at 321.00 and 324.00, respectively.

Against UAE Dirham, the PKR lost 20 paisa for both buying and selling, closing at 82.20 and 83.00, respectively.

Against Saudi Riyal, the PKR lost 20 paisa for both buying and selling, closing at 79.00 and 79.70, respectively.

Open-market rates for dollar on Friday

BID                            Rs 294.00

OFFER                      Rs 297.00