Rupee improves, settles at 283.59 against US dollar

The Pakistani rupee improved its position against the US dollar, settling with a marginal appreciation of 0.08% during the trading session on Friday.

According to the State Bank of Pakistan (SBP), the local currency closed at 283.59, an increase of Re0.23.

The rupee had registered a marginal gain against the US dollar on Thursday as well, settling at 283.82 in the inter-bank market.

In a key development, the International Monetary Fund (IMF) reiterated that it is working with Pakistani authorities to bring the pending ninth review to conclusion “once the necessary financing is in place and the agreement is finalised”.

“In addition, the IMF supports the authorities in the implementation of policies in the period ahead, including in the technical work to prepare the FY24 budget, which is to be passed by the National Assembly before end-June,” Nathan Porter, the IMF Mission Chief for Pakistan, was quoted as saying in a statement to Business Recorder on Friday.

The development comes as Pakistan remains engaged with the Washington-based lender to resume its bailout programme that has been stalled at the ninth review since November last year.

Globally, the US dollar fell as traders priced in more aggressive rate cuts from the Federal Reserve.

A deepening crisis across US regional banks have kept investors on tenterhooks, with pressure growing on US regulators to take more steps to shore up the sector.

Shares of PacWest Bancorp plunged on Thursday, dragging other regional lenders down after the Los Angeles-based bank’s plan to explore strategic options heightened investor fears.

That left the greenback broadly lower on Friday, with the dollar index slipping 0.11% to 101.23.

Oil prices, a key indicator of currency parity, rose on Friday but were poised for a third straight week of losses after markets registered dramatic drops on fears of a weakening US economy and slowing Chinese demand.

Inter-bank market rates for dollar on Friday

BID Rs 283.60

OFFER Rs 285.60

Open-market movement

In the open market, the PKR gained 2.50 rupees for both buying and selling against USD, closing at 284 and 287, respectively.

Against Euro, the PKR gained 1 rupee for both buying and selling, closing at 313 and 316 respectively.

Against UAE Dirham, the PKR gained 30 paisa for both buying and selling, closing at 77.50 and 78.20, respectively.

Against Saudi Riyal, the PKR gained 30 paisa for buying and selling, closing at 75.50 and 76.20, respectively.

Open-market rates for dollar on Friday

BID Rs 284

OFFER Rs 287