Inter-bank: rupee records 4th consecutive gain against US dollar

The Pakistani rupee continued its upward trajectory against the US dollar for the fourth successive session as it appreciated 0.07% in the inter-bank market on Friday.

As per the State Bank of Pakistan (SBP), the rupee settled at 284.97, an increase of Re0.20.

On Thursday, the rupee registered a marginal gain to settle at 285.17 against the US dollar.

In a related development, total liquid foreign exchange reserves held by the State Bank of Pakistan (SBP) increased by $77 million to $7.257 billion during the week ended November 24, 2023.

Internationally, the US dollar was on the backfoot on Friday, while the euro nursed steep losses as traders weighed data that showed inflation was easing, stoking expectations that interest rates had peaked and central banks would soon start cutting rates.

The dollar index, which measures the U.S. currency against six rivals, was 0.145% lower at 103.30, after clocking its weakest monthly performance in a year in November, despite a 0.6% jump overnight.

Data on Thursday showed that US consumer spending rose moderately in October, while the annual increase in inflation was the smallest in more than 2-1/2 years.

The eagerly awaited personal consumption expenditures (PCE) price index rose 3% in October from a year ago, moderating from a three-month string of 3.4% readings though still above the Fed’s 2% target.

Oil prices, a key indicator of currency parity, pared losses on Friday, after falling sharply in early trade and by over 2% on Thursday on perceptions that the voluntary oil output cuts agreed by OPEC+ producers were underwhelming.

Brent crude futures for February rose 6 cents, or 0.1%, to $80.92 a barrel by 0820 GMT. U.S. West Texas Intermediate crude futures rose 17 cents, or 0.2%, to $76.13.

Inter-bank market rates for dollar on Friday

BID                            Rs 284.95

OFFER                      Rs 285.15

Open-market movement

In the open market, the PKR gained 50 paisa for both buying and selling against USD, closing at 283.00 and 286.00, respectively.

Against Euro, the PKR remained unchanged for both buying and selling, closing at 308.00 and 311.00, respectively.

Against UAE Dirham, the PKR remained unchanged for both buying and selling, closing at 77.50 and 78.20, respectively.

Against Saudi Riyal, the PKR remained unchanged for both buying and selling, closing at 75.50 and 76.20, respectively.

Open-market rates for dollar on Friday

BID                            Rs 283.00

OFFER                      Rs 286.00