Inter-bank: rupee records fourth successive gain against US dollar

The Pakistani rupee maintained its upward trend against the US dollar for the fourth successive session as it appreciated 0.09% in the inter-bank market on Friday.

As per the State Bank of Pakistan (SBP), the rupee settled at 283.26 after an increase of Re0.25.

On Thursday, the rupee recorded a slight gain to settle at 283.51 against the US dollar.

Globally, the US dollar languished near four-month lows on Friday, weighed by growing prospects of US interest rate cuts next year, while the euro and pound found support as the central banks there reiterated the need for rates to stay higher for longer.

In an action-packed week for central banks, traders found more clarity on when interest rate cuts were likely after Federal Reserve Chair Jerome Powell said at Wednesday’s meeting that the tightening of monetary policy is likely over, with a discussion of cuts coming “into view”.

The Fed’s projections implied 75 basis points of cuts next year, from the current level.

That has resulted in the greenback sliding broadly against rivals, with the dollar index at 102.05, not far from the four-month low of 101.76 it touched on Thursday.

The index is down 1.9% and on course for its steepest weekly decline since July.

Oil prices, a key indicator of currency parity, rose on Friday, on track to notch their first weekly rise in two months after benefiting from a bullish forecast from the International Energy Agency (IEA) on oil demand for next year and a weaker dollar.

Brent futures rose 21 cents to $76.82 a barrel at 0918 GMT. US West Texas Intermediate (WTI) crude also climbed 21 cents, to $71.79.

Inter-bank market rates for dollar on Friday

BID                            Rs 283.25

OFFER                      Rs 283.45

Open-market movement

In the open market, the PKR remained unchanged for both buying and selling against USD, closing at 281.50 and 284.50, respectively.

Against Euro, the PKR lost 2.00 rupees for both buying and selling, closing at 308.00 and 311.00, respectively.

Against UAE Dirham, the PKR gained 10 paisa for both buying and selling, closing at 77.50 and 78.20, respectively.

Against Saudi Riyal, the PKR gained 20 paisa for both buying and selling, closing at 75.30 and 76.00, respectively.

Open-market rates for dollar on Friday

BID                            Rs 281.50

OFFER                      Rs 284.50