- Currency appreciates 0.12% against US dollar
After remaining undisturbed for two sessions, Pakistan’s rupee recorded an appreciation of 0.12% against the US dollar in the inter-bank market on Thursday.
As per the State Bank of Pakistan (SBP), the rupee closed at 223.69 after an increase of Re0.26.
On Wednesday, the rupee remained unchanged against the US dollar to close at 223.95.
In a key development, Federal Minister for Finance and Revenue Ishaq Dar on Wednesday said steps are being taken to stop the smuggling of US dollar to a “neighbouring” country, which will help the economy.
Moreover, Consumer Price Index (CPI)-based inflation clocked in at 23.8% in November 2022 on a year-on-year (YoY) basis, showed data released by the Pakistan Bureau of Statistics (PBS) on Thursday.
Globally, the dollar tumbled to a three-month low versus the yen on Thursday as traders focused on comments by Federal Reserve Chair Jerome Powell that interest rate hikes could be scaled back “as soon as December.”
Powell said on Wednesday that “slowing down at this point is a good way to balance the risks” but added that controlling inflation “will require holding policy at a restrictive level for some time”.
Markets are currently pricing in a 91% probability that the Fed increases rates by 50 basis points on December 14, and see a 9% chance of another 75-basis-point hike that day. The peak is seen below 5% around May.
The dollar index, which measures the currency against six major peers including the yen and euro, extended Wednesday’s more than 1% drop into Thursday, dipping a further 0.09% to 105.69.
Oil prices, a key indicator of currency parity, rose on Thursday supported by investor wariness that OPEC+ may cut supply further at its meeting on Sunday and as easing COVID curbs in China raised hopes about higher demand in the world’s top crude importer.
Inter-bank market rates for dollar on Thursday
BID Rs 223.75
OFFER Rs 224.75
In the open market, the PKR remained unchanged for both buying and selling against USD, closing at 229.25 and 231.50, respectively.
Against Euro, the PKR lost one rupee for both buying and selling, closing at 247 and 249 respectively.
Against UAE Dirham, the PKR remained unchanged for both buying and selling, closing at 65.40 and 66, respectively.
Against Saudi Riyal, the PKR gained 10 paisas for both buying and selling, closing at 63.30 and 63.80, respectively.
Open-market rates for dollar on Thursday
BID Rs 229.25
OFFER Rs 231.50