Rupee falters, settles at 283.92 against US dollar

The Pakistani rupee sustained a loss against the US dollar, settling with a depreciation of 0.19% during the trading session on Thursday.

According to the State Bank of Pakistan (SBP), the local currency closed at 283.92, a decrease of Re0.53. It had appreciated during the early hours of trading but failed to sustain its gain.

The rupee had remained largely stable against the US dollar on Wednesday, settling at 283.39 in the inter-bank market, which opened after a five-day gap owing to Eid holidays.

Market participants continue to await resumption of the International Monetary Fund (IMF) Extended Fund Facility (EFF), which has been stalled since November last year.

Globally, the US dollar hovered near a one-year low versus the euro on Thursday, as Europe’s resilient economy contrasted with banking contagion risks in the United States, the debt ceiling standoff and a potential recession.

The dollar index – which measures the greenback against six major peers, with the euro the most heavily weighted – was little changed at 101.41, following a 0.42% slide on Wednesday, when it touched a near two-week low of 101.00.

The US capital goods spending fell more than expected in the latest data overnight, adding to jitters about a downturn. The mood wasn’t helped by First Republic Bank’s continued slump, or the continued wrangling over an extension to the US debt ceiling.

Oil prices, a key indicator of currency parity, edged higher on Thursday after a price drop the previous day reversed the supportive impact of a surprise OPEC production cut announced this month.

Inter-bank market rates for dollar on Thursday

BID Rs 283.90

OFFER Rs 286.00

Open-market movement

In the open market, the PKR gained 50 paisa for both buying and selling against USD, closing at 287.50 and 290.50, respectively.

Against Euro, the PKR remained unchanged for both buying and selling, closing at 315 and 318 respectively.

Against UAE Dirham, the PKR gained 10 paisa for buying and lost 5 paisa for selling, closing at 78.60 and 79.35, respectively.

Against Saudi Riyal, the PKR gained 40 paisa for buying and 35 paisa for selling, closing at 76.10 and 76.85, respectively.

Open-market rates for dollar on Thursday

BID Rs 287.50

OFFER Rs 290.50