Rupee unable to sustain gains, depreciates against US dollar

After back-to-back gains, rupee's trajectory reversed as it depreciated 0.09% against the US dollar in the inter-bank market on Thursday.

As per the State Bank of Pakistan (SBP), the rupee closed at 176.38 after a day-on-day depreciation of 15 paisas or 0.09%. The appreciation comes after the rupee gained 0.23% against the dollar on Wednesday.

Last month, the rupee had closed at its all-time record low of 178.24 against the US dollar before appreciating the following two days to end the year at 176.51.

Pakistan's rupee registers back-to-back gains against US dollar

The reversal comes on the back of rising oil prices in the international markets, raising concerns of a spike in import figures.

“Crude oil prices are increasing rapidly, leading to an expectation of a hike in import bill, creating a negative sentiment in the market,” Fahad Rauf, Head of Research at Iqbal Ismail Securities Limited, told Business Recorder.

His statement comes as US West Texas Intermediate (WTI) was being traded at $82.44 a barrel on Thursday, while Brent crude hovered at $84.48 a barrel.

Rauf said that he expects prices to jump by Rs5 per litre in the coming days, even “without the PDL (Petroleum Development Levy) increase”.

"Market sentiment is further worsened due to reports of a fall in textile exports," he said.

Days ago, the All Pakistan Textile Mills Association (APTMA) demanded immediate measures to save the industry from heavy production and export losses, citing gas shortage as a reason.

Inter-bank market rates for dollar on Thursday

BID Rs 176.30

OFFER Rs 176.40

Open-market movement

In the open market, the PKR gained 50 paisas for both buying and selling against USD, closing at 177.50 and 178.50, respectively.

Against Euro, the PKR lost 50 paisas for both buying and selling, closing at 201 and 203, respectively.

Against UAE Dirham, the PKR gained 28 paisas for buying and 20 paisas for selling, closing at 48.52 and 49, respectively.

Against Saudi Riyal, the PKR gained 20 paisas for buying and 15 paisas for selling, closing at 46.60 and 47.05, respectively.

Open-market rates for dollar on Thursday

BID Rs 177.50

OFFER Rs 178.50