Back-to-back gains: rupee settles at 281.71 against US dollar

The Pakistani rupee saw back-to-back gains against the US dollar, appreciating 0.25% in the inter-bank market on Friday amid positive news from the finance minister regarding inflows from China and as the dollar slipped on the international front.

As per the State Bank of Pakistan (SBP), the rupee settled at 281.71, an improvement of Re0.71.

A day earlier, the rupee saw some respite against the US dollar, settling at 282.42 in the inter-bank market on Thursday, a gain of Re0.43 or 0.15%.

In a key development, Finance Minister Ishaq Dar on Thursday said that documentation for second disbursement of $500 million dollars from Industrial and Commercial Bank of China (ICBC) had been completed.

The country’s total liquid foreign exchange reserves rose by $93 million during the last week. According to SBP’s weekly foreign exchange report issued on Thursday, SBP’s reserves increased by $18 million to $4.319 billion, up from $4.301 billion a week earlier.

In another significant development, Dar told the Senate on Thursday that an assurance from “friendly countries” to fund a balance of payment gap was the last hurdle in securing an International Monetary Fund (IMF) deal, which will offer a critical lifeline to avert an economic meltdown.

Internationally, the dollar slipped on Friday after authorities and banks moved to ease stress on the financial system, taking the heat off most major currencies that tumbled this week in the wake of bank turmoil.

Action to rescue First Republic Bank in the US on Thursday boosted risk appetite globally on Friday as fears of a global banking crisis eased, making way for surges in the Australian and New Zealand dollars.

The US dollar index fell 0.27% to 104.11.

Oil prices, a key indicator of currency parity, rebounded by about 1% on Friday after a meeting between Saudi Arabia and Russia calmed markets amid strong China demand expectations, after a banking crisis sparked a sell-off in global financial and oil markets this week.

Inter-bank market rates for dollar on Friday

BID Rs 281.70

OFFER Rs 284.00

Open-market movement

In the open market, the PKR gained 50 paisa for both buying and selling against USD, closing at 282 and 285, respectively.

Against Euro, the PKR lost 1 rupee for both buying and selling, closing at 299 and 302 respectively.

Against UAE Dirham, the PKR remained unchanged for both buying and selling, closing at 77.00 and 77.70, respectively.

Against Saudi Riyal, the PKR remained unchanged for both buying and selling, closing at 75.00 and 75.70, respectively.

Open-market rates for dollar on Friday

BID Rs 282

OFFER Rs 285