Rupee continues to enjoy upward ride, appreciates for fifth consecutive session

Pakistan's rupee maintained its upward momentum to record a fifth successive gain against the US dollar, appreciating 0.07% in the inter-bank market on Thursday.

As per the State Bank of Pakistan (SBP), the rupee closed at 181.69 after a day-on-day appreciation of 13 paisas or 0.07%. On Friday last week, the local currency had recorded its biggest increase on a day-to-day basis in the inter-bank market in two years after it closed at 184.68.

In the last five trading sessions, the rupee has appreciated by 3.6%, a remarkable turnaround for a currency that had hit its record low last week.

Rupee records fourth successive gain against US dollar, appreciates to 181.82

Oil prices, a major determinant of currency parity due to its status as a top import commodity for the South Asian country, slipped on Thursday amid thin trading volumes ahead of a public holiday, as traders weighed a larger-than-expected build in US oil stocks against tightening global supply.

Earlier, ex-finance minister Ishaq Dar also said the exchange rate will improve once Pakistan's economy is steered in the right direction, adding that rupee's historic fall has been due to the previous government's "incompetence".

Saad Khan, Head of Research at IGI Securities, told Business Recorder the recent appreciation run is purely driven by political factors, and has nothing to do with economic fundamentals.

“Economic conditions continue to remain very tough — oil prices are still above $100 a barrel, and this is quite high for a country like Pakistan,” said Khan.

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Talking about the latest remittance figures, the expert said the increase is unlikely to continue as it is due to a seasonal factor.

Inter-bank market rates for dollar on Thursday

BID Rs 181.60

OFFER Rs 181.70

Open-market movement

In the open market, the PKR gained 20 paisas for both buying and selling against USD, closing at 180.80 and 181.80, respectively.

Against Euro, the PKR lost 1.80 rupees for buying and 1.50 rupees for selling, closing at 196 and 197.50, respectively.

Against UAE Dirham, the PKR lost 18 paisas for buying and 20 paisas for selling, closing at 48.70 and 49.20, respectively.

Against Saudi Riyal, the PKR gained 32 paisas for buying and 30 paisas for selling, closing at 48 and 48.50, respectively.

Open-market rates for dollar on Thursday

BID Rs 180.80

OFFER Rs 181.80