Inter-bank market: rupee’s winning streak continues, settles at 278.58 against US dollar

The Pakistani rupee continued its merry run against the US dollar as it gained another 0.33% in the inter-bank market on Thursday. This is the rupee’s 26th consecutive appreciation against the greenback.

As per the State Bank of Pakistan (SBP), the rupee settled at 278.58 after an increase of Re0.93 in the inter-bank market.

On Wednesday, the rupee had appreciated 0.36% to settle at 279.51.

This is one of the longest appreciation runs seen by the rupee against the US dollar in the inter-bank market, and comes in large part due to the authorities’ crackdown on smuggling and hoarding of foreign currency as well as reforms in the Exchange Companies’ sector.

The SBP on Wednesday also suspended the authorisation of five Exchange Companies of ‘B’ Category for noncompliance of rules and regulations.

The SBP has become more vigilant on exchange companies and strict actions are being taken. During the last one month, authorisation of 9 exchange companies has been suspended for serious violations.

Internationally, the US dollar was rooted near a two-week low on Thursday following minutes from the last US Federal Reserve meeting that showed policymakers taking a cautious stance and as investors awaited key inflation data.

The dollar index, which measures the US currency against six rivals, was at 105.67, not far from 105.55, its lowest since Sept. 25 it touched on Wednesday. The index is down 0.4% for the week.

Fed officials pointed to uncertainties around the economy, oil prices and financial markets as supporting “the case for proceeding carefully in determining the extent of additional policy firming that may be appropriate,” according to the minutes released on Wednesday from the Sept. 19-20 meeting.

Oil prices, a key indicator of currency parity, rose about 1% on Thursday, reversing earlier falls, on expectations that U.S. interest rates had peaked, but a lower demand growth forecast for next year from the International Energy Agency and higher U.S. inventories limited further gains.

Brent futures rose $1.01, or 1.20%, to $86.83 a barrel at 0952 GMT, while U.S. West Texas Intermediate crude gained 73 cents, or 0.90%, to $84.22 a barrel.

Inter-bank market rates for dollar on Thursday

BID                            Rs 278.55

OFFER                      Rs 278.75

Open-market movement

In the open market, the PKR gained 1.00 rupee for both buying and selling against USD, closing at 275.00 and 278.00, respectively.

Against Euro, the PKR remained unchanged for both buying and selling, closing at 294.00 and 297.00, respectively.

Against UAE Dirham, the PKR lost 1.00 rupee for both buying and selling, closing at 75.50 and 76.20, respectively.

Against Saudi Riyal, the PKR lost 50 paisa for both buying and selling, closing at 73.50 and 74.20, respectively.

Open-market rates for dollar on Thursday

BID                            Rs 275.00

OFFER                      Rs 278.00