Rupee claws back further ground, settles at 284.4 against US dollar

The Pakistani rupee continued to gain against the US dollar, appreciating 0.18% in the inter-bank market on Friday.

According to the State Bank of Pakistan (SBP), the local currency settled at 284.40, an increase of Re0.51.

This comes a day after the rupee maintained its upward trajectory, settling at 284.91 in the inter-bank market after a gain of Rs1.71 or 0.60%.

In a major development towards revival of the stalled bailout programme, United Arab Emirates (UAE) authorities have assured the International Monetary Fund (IMF) that it will provide $1 billion as bilateral support to Pakistan, said Finance Minister Ishaq Dar on Friday.

Pakistan was required to give an assurance that its balance of payments deficit is fully financed for the remaining period of the IMF programme that has been stalled since November last year.

The finance minister later confirmed that Pakistan would receive another $300 million from the Industrial and Commercial Bank of China Ltd (ICBC) on Friday.

Pakistan has already received $1 billion from the Chinese institution.

Internationally, the US dollar languished near a two-month low against major peers on Friday while the euro flirted with a one-year peak, as traders ramped up expectations of an imminent end to the US Federal Reserve’s rate-hike cycle on signs of cooling inflation.

Data from the US Labor Department on Thursday showed the producer price index (PPI) fell by the most in nearly three years last month, coming a day after inflation data pointed to moderation in consumer prices.

The greenback took another leg down following Thursday’s data release, with the dollar index sinking to a two-month low of 100.84 in the previous session

Oil prices, a key indicator of currency parity, rose on Friday on worries over tightening supply, with the market looking ahead to the International Energy Agency’s (IEA) monthly report later in the day to clarify the global demand outlook.

Inter-bank market rates for dollar on Friday

BID Rs 284.40

OFFER Rs 287.00

Open-market movement

In the open market, the PKR gained 2 rupees for both buying and selling against USD, closing at 287 and 290, respectively.

Against Euro, the PKR lost 2.50 rupees for both buying and selling, closing at 314 and 317 respectively.

Against UAE Dirham, the PKR gained 80 paisa for both buying and selling, closing at 78.30 and 79.00, respectively.

Against Saudi Riyal, the PKR gained 10 paisa for both buying and selling, closing at 76.00 and 76.70, respectively.

Open-market rates for dollar on Friday

BID Rs 287

OFFER Rs 290