Inter-bank market: rupee continues its winning spree, settles at 277.62 against USD

The Pakistani rupee continued its winning run against the US dollar as it gained another 0.35% in the inter-bank market on Friday. This is the rupee’s 27th consecutive appreciation against the greenback.

As per the State Bank of Pakistan (SBP), the rupee settled at 277.62 after an increase of Re0.96 in the inter-bank market.

On Thursday, the rupee had appreciated 0.33% to settle at 278.58.

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 the foreign currency as well as reforms in the Exchange Companies’ sector.

In a related development, the SBP’s foreign exchange reserves rose by $31 million to $7.646 billion during the week ended October, 6, 2023 compared to $7.615 billion as of September 28, 2023.

Globally, the US dollar remained firm on Friday, putting pressure across a basket of currencies as stronger-than-expected US consumer inflation revived prospects that the Federal Reserve will have to keep rates higher for longer.

US consumer prices were pushed higher by a jump in rental costs in September, data showed on Thursday.

Although steady moderation in underlying inflation pressures supported expectations that the Fed would not hike interest rates next month, the data did raise the chance of rates staying elevated for some time.

The dollar index, which measures the US currency against six of its major peers, sat at 106.49 in the Asian morning.

Oil prices, a key indicator of currency parity, jumped $2 on Friday after the US tightened its sanctions programme against Russian crude exports, raising supply concerns in an already tight market, and global inventories are forecast to decline through the fourth quarter.

Brent futures rose $1.96, or 2.28%, to $87.96 per barrel as of 0819 GMT. US West Texas Intermediate (WTI) crude gained $1.98, or 2.39%, to $84.89 a barrel.

Inter-bank market rates for dollar on Friday

BID                            Rs 277.60

OFFER                      Rs 277.80

Open-market movement

In the open market, the PKR gained 1.00 rupee for both buying and selling against USD, closing at 274.00 and 277.00, respectively.

Against Euro, the PKR gained 1.00 rupee for both buying and selling, closing at 293.00 and 296.00, respectively.

Against UAE Dirham, the PKR lost 50 paisa for buying and 55 paisa for selling, closing at 76.00 and 76.75, respectively.

Against Saudi Riyal, the PKR remained unchanged for both buying and selling, closing at 73.50 and 74.20, respectively.

Open-market rates for dollar on Friday

BID                            Rs 274.00

OFFER                      Rs 277.00