16th successive decline: rupee dips further against US dollar

Pakistan’s rupee registered a marginal decline against the US dollar for the 16th successive session, depreciating 0.02% in the inter-bank market on Wednesday.

As per the State Bank of Pakistan (SBP), the rupee declined by Re0.05 to close at 227.93. During the ongoing fiscal year, the rupee has depreciated 10.16% against the greenback.

On Tuesday, the rupee had registered a loss for the 15th successive session against the US dollar to settle at 227.88 after a decrease of Re0.47 or 0.21%.

In a key development, the Kingdom of Saudi Arabia (KSA) said it could increase its investments in Pakistan’s cash-strapped economy to $10 billion, the Saudi state news agency reported on Tuesday, as well as increase the ceiling on deposits into the Pakistan central bank to $5 billion.

Last month, the Saudis extended the terms of an existing $3 billion deposit in the central bank it made in 2021.

On Monday, international donors - including Saudi Arabia - committed over $9 billion to help Pakistan recover from ruinous floods last year at a Geneva meeting co-hosted by the United Nations and Pakistan’s government.

Globally, the US dollar held its ground on Wednesday, in spite of downward pressure from lower bond yields and higher stocks, as traders waited on this week’s US consumer price data to see whether it will confirm that inflation is in retreat.

The greenback has lost about 11% against the common currency since hitting a 20-year peak in September, as investors have started to anticipate easing inflation and with it a falling dollar as the need for more interest rate hikes wanes.

Oil prices, a key indicator of currency parity, were broadly steady on Wednesday as market participants were pulled in different directions by an unexpected build in US crude and fuel inventories, global economic uncertainty and China reopening its economy.

Inter-bank market rates for dollar on Wednesday

BID Rs 227.90

OFFER Rs 228.90

Open-market movement

In the open market, the PKR lost one rupee for both buying and selling against USD, closing at 235.75 and 238, respectively.

Against Euro, the PKR remained unchanged for buying while gaining 50 paisas for selling, closing at 270 and 272 respectively.

Against UAE Dirham, the PKR gained 10 paisas for both buying and selling, closing at 68.70 and 69.20, respectively.

Against Saudi Riyal, the PKR gained 10 paisas for buying while remaining unchanged for selling, closing at 66.70 and 67.30, respectively.

Open-market rates for dollar on Wednesday

BID Rs 235.75

OFFER Rs 238