Inter-bank: rupee continues to decline, falls for 14th successive session

The Pakistani rupee’s downward trajectory continued for the 14th successive session against the US dollar, as it depreciated 0.05% in the inter-bank market on Friday.

As per the State Bank of Pakistan (SBP), the rupee settled at 287.03, a decrease of Re0.13.

On Wednesday, the rupee had depreciated 0.18% to settle at 286.90 against the US dollar.

In a related development, Moody’s Investors Services (Moody’s), in its latest report, warned that with the lowest level of exports of 10.5% of GDP, Pakistan is the most vulnerable to a balance of payment (BOP) crises among South Asian sovereigns.

The ratings agency, in its latest report, ‘Sovereigns – South Asia, Low trade openness fuels vulnerability to shocks and curbs growth in the longer run’ stated that Pakistan and Sri Lanka are most vulnerable among the four sovereigns.

Internationally, the US dollar was headed for its best week against the yen in three months on Friday, after Federal Reserve Chair Jerome Powell and a chorus of Fed officials poured cold water on market expectations of a peak in US rates.

In cryptocurrencies, bitcoin and ether held near multi-month highs, with renewed speculation over the imminent approval of an exchange-traded bitcoin fund breathing new life into the digital assets.

A slew of Fed policymakers including Powell on Thursday said they are still not sure that interest rates are high enough to finish the battle with inflation, comments taken as hawkish by markets and which sent the greenback rising.

Oil prices, a key indicator of currency parity, were up slightly on Friday but are set to fall for a third week as concerns of supply disruptions from the Israel-Hamas conflict have ebbed allowing demand worries to reassert themselves.

Brent crude futures for January were up 41 cents, or 0.5%, at $80.42 a barrel at 0550 GMT, while the US West Texas Intermediate (WTI) crude futures for December were at $76.06, up 32 cents, or 0.4%. Brent futures are down 5.7% this week while WTI has declined 5.9% since last week.

Inter-bank market rates for dollar on Friday

BID                            Rs 287.05

OFFER                      Rs 287.25

Open-market movement

In the open market, the PKR lost 50 paisa for both buying and selling against USD, closing at 285.00 and 288.00, respectively.

Against Euro, the PKR remained unchanged for both buying and selling, closing at 304.00 and 307.00, respectively.

Against UAE Dirham, the PKR lost 30 paisa for buying and 20 paisa for selling, closing at 79.80 and 80.50, respectively.

Against Saudi Riyal, the PKR remained unchanged for both buying and selling, closing at 76.00 and 76.70, respectively.

Open-market rates for dollar on Friday

BID                            Rs 285.00

OFFER                      Rs 288.00