Inter-bank market: rupee dips, settles at 285.68 against US dollar

The Pakistani rupee sustained marginal losses against the US dollar, depreciating 0.11% in the inter-bank market on Friday.

At close, the currency settled at 285.68, a decline of Re0.30, as per the State Bank of Pakistan (SBP).

However, in the open market, US dollar regained some of its lost ground against the Pakistani rupee, as the shortage of foreign currency kept the PKR under pressure.

On Thursday, the rupee registered marginal improvement to settle at 285.38, or 0.09% up against the US dollar in the inter-bank.

In a key development, Minister of State for Finance, Aisha Ghaus Pasha on Thursday said the agreement on 9th review was delayed because the International Monetary Fund (IMF) is not ready to reduce the external financing requirement to $3 billion and categorically stated that there is no Plan-B and the government is committed to the IMF programme.

The resumption of the stalled IMF programme, which has remained stalled since November last year, is crucial for the cash-strapped economy.

The reserves held by SBP decreased by $102 million to $4.091 billion due to external debt payments.

Meanwhile, the Consumer Price Index (CPI)-based inflation increased to a new high of 38% on a year-on-year basis in May 2023 as compared to an increase of 36.4% in the previous month, Pakistan Bureau of Statistics (PBS) said.

Globally, the US dollar wallowed near a one-week low versus major peers on Friday, on course for its worst week since mid-January, amid strengthening views that the Federal Reserve will forgo an interest rate hike this month.

The US dollar index, which measures the greenback against a basket of six rivals, weakened 0.06% to 103.48 in Asian trading, extending a 0.62% slide from Thursday, its worst day in almost a month.

For the week, the index is on course to lose 0.73%.

Oil prices, a key indicator of currency parity, rose on Friday after a US debt ceiling deal averted a default in the world’s biggest oil consumer, while attention turned to a meeting of OPEC ministers and their allies at the weekend.