- Cumulatively, currency has lost Rs3.05 against the US dollar in the last eight trading sessions
Pakistan’s rupee finally ended its seven-session depreciation run against the US dollar, and registered a marginal improvement of 0.05% in the inter-bank on Friday.
As per the State Bank of Pakistan (SBP), the rupee closed at 220.84 after appreciating Re0.11. After the minor gain, the rupee has depreciated an overall 1.38% in the last eight sessions.
On Thursday, Pakistan’s rupee had posted a marginal decline against the US dollar, and closed at 220.95 after depreciating Re0.07.
As per market experts, after making impressive gains since the last week of September amid Ishaq Dar's appointment as the finance minister, the rupee is now stabilising against the US dollar as market fundamentals kick in.
Meanwhile, the market remained in wait for the Financial Action Task Force's (FATF) decision over Pakistan's removal from its grey list today (Friday).
“If Pakistan is removed from the grey list, it would give the country a boost to its image and reputation in terms of its actions to combat terror financing and money laundering,” said Topline Securities in a note on Friday.
“Though we do not see any major uptick in foreign direct investment and other capital flows in the country due to Pakistan’s removal from grey list, however, the significance of dealing with terror financing and money laundering in the last few years has increased,” added the brokerage house.
Globally, the greenback rose against a basket of currencies on the back of surging Treasury yields, with the US dollar index up 0.03% to 112.97.
US Treasury yields extended their climb overnight, with the two-year Treasury yield hitting a 15-year high of 4.623%, while the benchmark 10-year Treasury yield peaked at 4.243%, its highest level since June 2008.
Oil prices, a key indicator of currency parity, slipped on Friday and were heading for a second weekly decline as investors weighed the impact of sharp interest rate rises on energy consumption, offsetting hopes of higher Chinese demand and output cuts by OPEC and its allies.
Inter-bank market rates for dollar on Friday
In the open market, the PKR gained 50 paisas for both buying and selling against USD, closing at 222.70 and 224.90, respectively.
Against Euro, the PKR gained 1.80 rupees for both buying and selling, closing at 216.50 and 218.65 respectively.
Against UAE Dirham, the PKR lost one rupee for both buying and selling, closing at 64 and 64.60, respectively.
Against Saudi Riyal, the PKR gained 15 paisas for buying and 10 paisas for selling, closing at 59.10 and 59.70, respectively.
Open-market rates for dollar on Friday