6th successive gain: Rupee closes the week at 228.45 against US dollar

Pakistan's rupee maintained its winning momentum against the US dollar for the sixth successive session on Friday, closing over 0.5% higher in the inter-bank market.

As per the State Bank of Pakistan (SBP), the rupee closed at 228.45 after appreciating Rs1.18 or 0.52%. In the last six trading sessions, the rupee has cumulatively appreciated Rs11.26 or 4.93%.

On Thursday, the rupee marched upwards against the US dollar for the fifth successive session, closing at 229.63 after appreciating Rs2.49 or 1.08% in the inter-bank market as bullish sentiment over Ishaq Dar's return continued. Dar was sworn in as Federal Minister for Finance and Revenue on Thursday.

Dar sworn in as finance and revenue minister

Market experts have attributed the recent appreciation run to the curb in speculative activity in the market, as a result of measures taken by the State Bank of Pakistan and statements given by the new finance minister.

However, they have expressed concern that sentiment-based improvement without any fundamental development will be temporary and the rupee will revert back to its declining path, unless dollar inflows are materialised.

In a negative development for the Pakistani rupee, foreign exchange reserves held by the central bank fell another $341 million, clocking in at an alarming level of $8 billion as of September 23, 2022, as per data released on Thursday.

Internationally, most currencies sighed after the US dollar took a step back from its dominant rally.

The dollar index, which measures the greenback against the euro, sterling and four other major peers, managed to edge 0.12% higher to 111.93, but remained close to a one-week low of 111.64 reached overnight.

Oil prices, a key determinant of currency parity, were on track for their first weekly gain in five on Friday, underpinned by a weaker dollar and the possibility that OPEC+ will agree to cut crude output when it meets on October 5.

Inter-bank market rates for dollar on Friday

BID Rs 228.60

OFFER Rs 229.60

Open-market movement

In the open market, the PKR remained unchanged for both buying and selling against USD, closing at 228 and 230, respectively.

Against Euro, the PKR lost 3 rupees for both buying and selling, closing at 225 and 227 respectively.

Against UAE Dirham, the PKR lost 20 paisas for both buying and selling, closing at 62.70 and 63.20, respectively.

Against Saudi Riyal, the PKR lost 30 paisas for buying and 40 paisas for selling, closing at 60.80 and 61.40, respectively.

Open-market rates for dollar on Friday

BID Rs 228

OFFER Rs 230