4th successive gain: rupee appreciates 0.59% against US dollar

The Pakistani rupee maintained its upward trajectory against the US dollar for the fourth successive session, appreciating 0.59% in the inter-bank market on Friday.

As per the State Bank of Pakistan (SBP), the currency closed at 262.82 against the US dollar, an increase of Rs1.56. Despite the gain, the currency has depreciated by 21.8% during the ongoing fiscal year against the greenback.

The Pakistani rupee had continued its upward momentum against the US dollar on Thursday as well, settling at 264.38 an appreciation of Re1 or 0.38%.

In a key development, foreign exchange reserves held by the SBP increased $276 million to $3.19 billion, data released on Thursday showed. This is the first increase in reserves after three weeks.

Total liquid foreign reserves held by the country stood at $8.7 billion. Net foreign reserves held by commercial banks stood at $5.51 billion.

However, the reserves’ level is still alarmingly low at less than one month of import cover.

Internationally, the dollar rode US Treasury yields higher on Friday and was eyeing a third straight week of gains, as a bout of resilient economic data out of the United States raised market expectations that more interest rate hikes were in the offing.

Data on Thursday showed that the number of Americans filing new claims for unemployment benefits unexpectedly fell last week, while other data revealed that monthly producer prices increased by the most in seven months in January.

Against a basket of currencies, the US dollar index was last 0.09% higher at 104.20, having risen to a more than one-month high of 104.24 in the previous session, and was on track for a third straight weekly gain.

Oil prices, a key indicator of currency parity, fell about 2% on Friday and was heading for a weekly decline, pressured by concerns of more US Federal Reserve interest rate hikes that could weigh on demand, and signs of ample supply.

Inter-bank market rates for dollar on Friday

BID Rs 262.80

OFFER Rs 264.80

Open-market movement

In the open market, the PKR remained unchanged for buying and selling against USD, closing at 265 and 268, respectively.

Against Euro, the PKR gained 2 rupees for buying and selling, closing at 278.50 and 281.50 respectively.

Against UAE Dirham, the PKR gained 30 paisa for buying and 20 paisa for selling, closing at 72.70 and 73.50, respectively.

Against Saudi Riyal, the PKR gained 20 paisa for buying and selling, closing at 69.80 and 70.50, respectively.

Open-market rates for dollar on Friday

BID Rs 265

OFFER Rs 268