Inter-bank: rupee weakens further, settles at 286.88 against US dollar

The Pakistani rupee registered losses for the fourth session in a row, depreciating 0.11% against the US dollar in the inter-bank market on Wednesday.

At close, the currency settled at 286.88, a decline of Re0.32, as per the State Bank of Pakistan (SBP).

However, in the open-market PKR witnessed significant improvement against the USD on Wednesday.

The US dollar was being quoted in the range of 297-300 in the open-market, as compared to a range of 300-303 on Tuesday, down by Rs3.

On Tuesday, the rupee had maintained its downward trajectory against the US dollar for the third consecutive session to settle at 286.56, lower by 0.13% against the US dollar in the inter-bank.

In a key development, Pakistani authorities are now hopeful of inking a deal with the International Monetary Fund (IMF) before they unveil the budget on June 9 (Friday), said the Ministry of Finance in an emailed response to questions from Bloomberg.

The ministry said Pakistan has lined up $4 billion in external financing and hopes to obtain a deal with the lender before it unveils its budget on Friday.

Separately, the National Economic Council (NEC) approved Rs1,150 billion federal development budget and set an estimated 3.5% Gross Domestic Product (GDP) growth target for the next financial year 2023-24.

The NEC proposed the Annual Development Plan (ADP) for the upcoming fiscal year (2023-24) with a total outlay of Rs2.709 trillion.

Internationally, the US dollar edged lower on Wednesday as traders assessed the odds of a rate hike by the Federal Reserve next week, while the Aussie scaled a fresh three-week high in the wake of a rate increase and a decidedly hawkish stance by its central bank.

In the broader currency market, the US dollar dipped in early Asia trade, as traders pared back their expectations of a rate hike at next week’s FOMC meeting.

The US dollar index slipped 0.03% to 104.05, while the euro rose 0.07% to $1.0698.

Oil prices, a key indicator of currency parity, fell for a second day on Wednesday as concerns over global economic headwinds deepened, erasing the price gains booked after top crude exporter Saudi Arabia’s surprise weekend pledge to deepen output cuts.

Inter-bank market rates for dollar on Wednesday

BID Rs 286.70

OFFER Rs 286.90

Open-market movement

In the open market, the PKR gained 3 rupees for both buying and selling against USD, closing at 297.00 and 300.00, respectively.

Against Euro, the PKR gained 5 rupees for both buying and selling, closing at 315.00 and 318.00 respectively.

Against UAE Dirham, the PKR lost 50 paisa for both buying and selling, closing at 82.50 and 83.30, respectively.

Against Saudi Riyal, the PKR gained 1.25 rupee for buying and 1.30 rupee for selling, closing at 77.75 and 78.50, respectively.

Open-market rates for dollar on Wednesday

BID Rs 297.00

OFFER Rs 300.00