Rupee records marginal depreciation, settles at 218.38 against US dollar

Pakistan’s rupee dipped against the US dollar, and registered a marginal decline of 0.23% in the inter-bank market on Thursday.

As per the State Bank of Pakistan (SBP), the rupee closed at 218.38 after depreciating Re0.50 or 0.23%. The rupee has cumulatively appreciated Rs21.32 or 9.8% in the last fifteen trading sessions.

On Wednesday, the rupee finally ended its 13-session appreciation run against the US dollar, and closed at 217.88 after depreciating Re0.09 or 0.04%.

After recovering throughout the month of October, which came on the back of a shift in sentiment and actions taken by the central bank against players involved in speculative activity, the rupee is showing signs of stabilization against the US dollar.

“The reversal of rupee started with changes in sentiment amid Ishaq Dar's arrival, who has the tendency of keeping the currency in a controlled range,” said JS Global Head of Research Amreen Soorani while talking to Business Recorder.

The analyst said that the sentiment-based change is hard to quantify, however amid expected inflows from multilateral institutions, the momentum is expected to sustain.

“The rupee is expected to remain range bound in the coming days” added Soorani.

Globally, US dollar remained steady against other currencies, as investors wait for US inflation figures out later on Thursday. The data is expected to reinforce bets that the Federal Reserve will continue to aggressively tighten policy.

Core inflation is projected to rise 6.5% year-on-year in September. Overnight, data showed that US producer prices increased more than expected last month.

Meanwhile, the US dollar index firmed at 113.27.

Oil prices, a key indicator of currency parity, finding continued support from an OPEC+ decision last week to cut supplies, as the International Energy Agency warned that those cuts may push the global economy into recession.

Inter-bank market rates for dollar on Thursday

BID Rs 218.40

OFFER Rs 219.40

Open-market movement

In the open market, the PKR lost 1.50 rupees for both buying and selling against USD, closing at 220 and 222, respectively.

Against Euro, the PKR lost 6 rupees for both buying and selling, closing at 221 and 223 respectively.

Against UAE Dirham, the PKR lost 50 paisas for both buying and selling, closing at 61 and 61.50, respectively.

Against Saudi Riyal, the PKR lost 60 paisas for buying and 70 paisas for selling, closing at 59.30 and 59.90, respectively.

Open-market rates for dollar on Thursday

BID Rs 220

OFFER Rs 222