Inter-bank: rupee records seventh straight gain against US dollar

The Pakistani rupee maintained its upward trajectory against the US dollar for the seventh straight session as it appreciated 0.04% in the inter-bank market on Wednesday.

As per the State Bank of Pakistan (SBP), the rupee settled at 282.9 after an increase of Re0.11.

On Tuesday, the rupee recorded a slight gain to settle at 283.01 against the US dollar.

In a related development, fresh austerity measures for the current fiscal year 2023-24 are under submission to the prime minister for approval to control current expenditure, official documents of the Finance Division told Business Recorder.

Documents noted that measures like a ban on the procurement of durable goods and vehicles are still in vogue and being implemented.

Internationally, the US dollar slipped against most major currencies on Wednesday as traders continued to sell the currency on bets that the US Federal Reserve will soon begin cutting interest rates, ahead of inflation data later this week.

Fed officials have been pushing back after last week’s Federal Open Market Committee meeting saw three rate cuts penciled in for 2024, sparking a rally in financial markets.

Market participants are currently pricing in a 67.5% chance of the first rate cut happening at the Fed’s March meeting, according to the CME FedWatch tool.

The dollar index was last mostly flat at 102.20 after sliding more than 0.3% on Tuesday and hitting a four-month low of 101.76 last week.

Oil prices, a key indicator of currency parity, topped $80 a barrel on Wednesday amid jitters over global trade disruption and geopolitical tensions in the Middle East following attacks on ships by Yemen’s Iran-aligned Houthi forces in the Red Sea.

Brent crude futures rose 89 cents, or 1.1%, at $80.12 a barrel by 1101 GMT, while U.S. West Texas Intermediate crude climbed 93 cents, or 1.3%, to $74.87 a barrel.

Inter-bank market rates for dollar on Wednesday

BID Rs 282.90

OFFER Rs 283.10

Open-market movement

In the open market, the PKR lost 25 paisa for both buying and selling against USD, closing at 281.50 and 284.50, respectively.

Against Euro, the PKR remained unchanged for both buying and selling, closing at 307.00 and 310.00, respectively.

Against UAE Dirham, the PKR remained unchanged for both buying and selling, closing at 77.30 and 78.00, respectively.

Against Saudi Riyal, the PKR gained 10 paisa for both buying and selling, closing at 75.20 and 75.90, respectively.

Open-market rates for dollar on Wednesday

BID Rs 281.50

OFFER Rs 284.50