Rupee dips against US dollar, closes at 283.92

The Pakistani rupee failed to hold ground against the US dollar, depreciating 0.13% in the inter-bank market on Wednesday.

As per the State Bank of Pakistan (SBP), the rupee settled at 283.92, a loss of Re0.37. Earlier during the day, the rupee was being quoted at 283.40 but was unable to maintain its momentum against the greenback.

A day earlier, the rupee had remained largely stable, settling at 283.55 in the inter-bank market, an increase of Re0.03 or 0.01%.

The market is still awaiting resumption of the International Monetary Fund’s (IMF) Extended Fund Facility (EFF) programme.

In a key development, Prime Minister Shehbaz Sharif on Tuesday claimed that the IMF was onboard with the new programme but asked for a step-by-step guarantee “fulfilled from friendly countries before it releases bailout funds”.

“We are hopeful that the commitments from friendly countries will also be done,” the prime minister said.

Internationally, the safe-haven US dollar remained on the backfoot on Wednesday following two days of losses as global financial markets regained a measure of stability on hopes a full-blown banking crisis can be averted.

The dollar index, which tracks the currency against six major peers, was flat in early Asian trading, following drops of about 0.3% in each of the past two sessions.

The weakness comes despite a rise in US Treasury yields, which is also the result of ebbing demand for the safest assets.

Oil prices, a key indicator of currency parity, rose for a third session on Wednesday as a halt to some exports from Iraqi Kurdistan raised concerns of tightening supplies and fears of a global banking crisis eased.

Inter-bank market rates for dollar on Wednesday

BID Rs 283.90

OFFER Rs 285.90

Open-market movement

In the open market, the PKR lost 50 paisa for both buying and selling against USD, closing at 283.50 and 286.50, respectively.

Against Euro, the PKR remained unchanged for both buying and selling, closing at 304.50 and 307.50 respectively.

Against UAE Dirham, the PKR gained 25 paisa for buying and 30 paisa for selling, closing at 77.00 and 77.70, respectively.

Against Saudi Riyal, the PKR gained 50 paisa for both buying and selling, closing at 75.30 and 76.00, respectively.

Open-market rates for dollar on Wednesday

BID Rs 283.50

OFFER Rs 286.50