Rupee improves, settles at 286.98 against US dollar

The Pakistani rupee saw a marginal gain against the US dollar with an appreciation of 0.08% in the inter-bank market on Wednesday.

At close, the currency settled at 286.98, an improvement of Re0.24, as per the State Bank of Pakistan (SBP).

On Tuesday, the rupee saw a marginal gain in the inter-bank market, appreciating 0.02% to settle at 287.22.

In a key development, the government on Tuesday unveiled what it termed the ‘Economic Revival Plan’ that focuses on “untapped potential in key sectors” at a time of record inflation, interest rates, and depleting foreign exchange reserves.

“The plan envisages capitalising Pakistan’s untapped potential in key sectors of defence production, agricultural, livestock, minerals, mining, IT and energy through indigenous development and investments from friendly countries,” read a statement.

Separately, Foreign Direct Investment (FDI) in the country plunged by 21% during the first eleven months of this fiscal year (FY23).

The State Bank of Pakistan (SBP) reported on Tuesday that Pakistan fetched FDI amounted to $1.32 billion during July-May of FY23 as against $1.66 billion in the same period of last fiscal year (FY22), depicting a decline of $345 million.

Globally, the US dollar was firm in Asia trade on Wednesday following surprisingly strong US housing data, while the yuan and Aussie dollar nursed losses and focus turned to Federal Reserve Chair Jerome Powell’s appearance before Congress later in the day.

Single-family housing starts surged 21.7% in May against expectations they’d be more or less flat.

The US dollar index was steady at 102.55.

Oil prices, a key indicator of currency parity, rebounded early on Wednesday, recovering after two straight sessions of losses, as expectations of hawkish Federal Reserve talk later in day and possible US crude stock drawdowns outweighed China demand worries.

Inter-bank market rates for dollar on Wednesday

BID Rs 286.90

OFFER Rs 287.00

Open-market movement

In the open market, the PKR remained unchanged for both buying and selling against USD, closing at 289.00 and 292.00, respectively.

Against Euro, the PKR lost 1 rupee for buying and remained unchanged for selling, closing at 312.00 and 315.00 respectively.

Against UAE Dirham, the PKR gained 70 paisa for buying and 80 paisa for selling, closing at 79.80 and 80.50, respectively.

Against Saudi Riyal, the PKR gained 25 paisa for both buying and selling, closing at 76.25 and 77.00, respectively.

Open-market rates for dollar on Wednesday

BID Rs 289.00

OFFER Rs 292.00