After witnessing marginal appreciation in the opening hours of trading, Pakistan’s rupee ended unchanged against the US dollar in the inter-bank market on Thursday.
As per the State Bank of Pakistan (SBP), the rupee closed at 224.71. The rupee has depreciated by 21.47% against the US dollar during the ongoing calendar year.
On Wednesday, the rupee had remained largely stable against the US dollar to settle at 224.71 after a decrease of Re0.01.
In a critical development, Finance Minister Ishaq Dar on Wednesday said that the International Monetary Fund (IMF) wanted to see not only the previous quarter but also the next three quarters, besides how the country would meet the $16 billion reconstruction and rehabilitation phase of floods.
Moreover, inflows of overseas workers’ remittances continued to decline in Pakistan, clocking in at $2.108 billion in November 2022, a drop of 14.3% on a year-on-year basis, showed data released by the SBP on Wednesday.
Internationally, the dollar was on the back foot on Thursday, even as the Federal Reserve kept to its hawkish rhetoric after raising rates by half a percentage point, as investors were doubtful over how much the central bank would commit to putting the brakes on growth to curb inflation.
Fed Chair Jerome Powell said overnight that the Fed would deliver more interest rate increases next year despite a possible recession in the US, with rates expected to peak above 5%.
Against a basket of currencies, the US dollar index was last 0.02% higher at 103.68, after touching a six-month low in the previous session.
Oil prices, a key indicator of currency parity, dipped on Thursday as the dollar firmed, while the possibility of further increases to interest rates by global central banks also heightened demand concerns.
Inter-bank market rates for dollar on Thursday
BID Rs 224.75
OFFER Rs 225.75
Open-market movement
In the open market, the PKR remained unchanged for both buying and selling against USD, closing at 231.70 and 234, respectively.
Against Euro, the PKR lost 1.50 rupees for both buying and selling, closing at 255 and 257 respectively.
Against UAE Dirham, the PKR lost 10 paisas for both buying and selling, closing at 67.10 and 67.60, respectively.
Against Saudi Riyal, the PKR lost 20 paisas for both buying and selling, closing at 64.30 and 64.80, respectively.
Open-market rates for dollar on Thursday
BID Rs 231.70
OFFER Rs 234
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