- Currency loses 0.1% in inter-bank market
Pakistan’s rupee ended its three-session appreciation run against the US dollar, and declined 0.1% in the inter-bank market on Friday.
As per the State Bank of Pakistan (SBP), the rupee closed at 221.64 after a depreciation of Re0.22.
On Thursday, rupee had registered a gain for the third consecutive session against the US dollar, and closed at 221.42 after an appreciation of Re0.23 or 0.1%.
In a key development, foreign exchange reserves held by the State Bank of Pakistan (SBP) plunged $956 million on a weekly basis, clocking in $7.96 billion as of November 4, 2022, as per data released on Thursday.
Meanwhile, total liquid foreign reserves held by the country stood at $13.72 billion.
The reserves’ position is critical for Pakistan as the cash-strapped South Asian economy is desperately seeking dollar inflows to meet its balance-of-payments needs.
A low level of forex reserves has also put pressure on the currency that has only seen stability in recent days.
Globally, the dollar languished on Friday after US inflation data came in cooler than expected, raising market hopes that inflation may have peaked and that the Federal Reserve will begin scaling back its hefty interest rate increases.
Figures showed that the consumer price index rose 7.7% year-on-year in October, the smallest gain since January and below forecasts of an 8% increase.
Against a basket of currencies, the US dollar index slumped more than 2% overnight, the most in over a decade. It last stood at 108.06.
Oil prices, a key indicator of currency parity, jumped by about 2% on Friday after health authorities in top global crude importer China eased some of the country’s heavy COVID curbs.
A weaker US dollar boosts oil demand as it makes the commodity cheaper for buyers holding other currencies.
Prices also picked up on Friday after milder-than-expected US inflation data reinforced hopes that the Federal Reserve will slow down rate hikes, boosting chances of a soft landing for the world’s biggest economy.
Inter-bank market rates for dollar on Friday
BID Rs 221.65
OFFER Rs 222.65
In the open market, the PKR remained unchanged for both buying and selling against USD, closing at 225.50 and 227.75, respectively.
Against Euro, the PKR lost 6.50 rupees for both buying and selling, closing at 240 and 242 respectively.
Against UAE Dirham, the PKR gained 20 paisas for both buying and selling, closing at 64.50 and 65, respectively.
Against Saudi Riyal, the PKR remained unchanged for both buying and selling, closing at 62.50 and 63, respectively.
Open-market rates for dollar on Friday
BID Rs 225.50
OFFER Rs 227.75