Rupee inches higher against US dollar, settles at 283.66

The Pakistani rupee was up slightly against the US dollar, appreciating 0.09% in the inter-bank market on Thursday.

As per the State Bank of Pakistan (SBP), the rupee settled at 283.66, a gain of Re0.26.

A day earlier, the rupee failed to hold ground against the US dollar, closing at 283.92 in the inter-bank market, an increase of Re0.37 or 0.13%.

In a key development, Minister of State for Finance Dr Aisha Ghaus-Pasha said on Wednesday that staff-level agreement on the 9th review was taking time because the International Monetary Fund (IMF) wants to independently verify commitments from friendly countries – Saudi Arabia and the United Arab Emirates.

Briefing the Senate Standing Committee on Finance, the minister claimed that some progress was recently made and hopefully there will be positive news.

She said China has come through for Pakistan and now it is being expected that Saudi Arabia and the UAE will do so as well.

Internationally, the US dollar was on the front foot on Thursday as receding concerns over the banking sector helped improve risk sentiment, with investors switching their attention to the Federal Reserve’s battle against inflation.

The dollar index, which measures the currency against six major peers, rose 0.097% at 102.73, after gaining 0.19% overnight. The index though was on course to clock a 2% decline for March due to market tumult induced by problems in the banking industry.

Oil prices, a key indicator of currency parity, fell on Thursday as the dollar strengthened, with investors keeping close tabs on developments related to the reduction of Iraqi Kurdistan oil exports.

Inter-bank market rates for dollar on Thursday

BID Rs 283.65

OFFER Rs 285.65

Open-market movement

In the open market, the PKR lost 50 paisa for both buying and selling against USD, closing at 284 and 287, respectively.

Against Euro, the PKR lost 1.50 rupee for both buying and selling, closing at 306 and 309 respectively.

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

Against Saudi Riyal, the PKR lost 40 paisa for buying and 30 paisa for selling, closing at 75.70 and 76.30, respectively.

Open-market rates for dollar on Thursday

BID Rs 284

OFFER Rs 287