Inter-bank: rupee declines for 17th consecutive session against US dollar

The Pakistani rupee maintained its downward trajectory for the 17th consecutive session against the US dollar, as it depreciated 0.09% in the inter-bank market on Wednesday.

As per the State Bank of Pakistan (SBP), the rupee settled at 288.14, a decrease of Re0.27.

On Tuesday, the rupee had depreciated 0.11% to settle at 287.87 against the US dollar.

Internationally, the US dollar stuttered at broadly lower levels on Wednesday after slumping overnight as a surprisingly softer US inflation reading bolstered bets that the Federal Reserve has reached the end of its monetary tightening cycle.

The sell-off in the dollar drove a rally for many of its peer currencies, with the euro sitting just below an over two-month high hit on Tuesday.

The frenetic currency market activity was sparked by data showing US consumer prices were unchanged in the month of October, with the annual rise in underlying inflation the smallest in two years. In the 12 months through October, the CPI climbed 3.2% - below economists’ estimates - after rising 3.7% in September.

The dollar index, which measures the currency against a basket of peers, last stood at 104.13 in the Asian morning, just off Tuesday’s two-month low of 103.98.

Oil prices, a key indicator of currency parity, dipped on Wednesday amid signs the United States, the world’s biggest oil producer, is at peak production, offsetting positive crude demand signals from top consumer China.

Brent futures were down 34 cents to $82.13 a barrel at 0949 GMT, while US West Texas Intermediate (WTI) crude was down 40 cents to $77.86.

Inter-bank market rates for dollar on Wednesday

BID                            Rs 288.15

OFFER                      Rs 288.35

Open-market movement

In the open market, the PKR lost 50 paisa for both buying and selling against USD, closing at 286.50 and 289.50, respectively.

Against Euro, the PKR lost 4.00 rupees for both buying and selling, closing at 309.00 and 312.00, respectively.

Against UAE Dirham, the PKR gained 30 paisa for both buying and selling, closing at 79.00 and 79.70, respectively.

Against Saudi Riyal, the PKR lost 20 paisa for both buying and selling, closing at 76.20 and 76.90, respectively.

Open-market rates for dollar on Wednesday

BID                            Rs 286.50

OFFER                      Rs 289.50