Back-to-back gains: rupee settles at 286.45 against US dollar

The Pakistani rupee continued to become stronger against the US dollar, as it appreciated 0.21% on Thursday.

At close, the rupee settled at 286.45, an increase of Re0.59, as per the State Bank of Pakistan (SBP).

On Wednesday, propelled by the central bank’s decision to allow Exchange Companies (ECs) to import US dollars in cash, the Pakistani rupee ended its eight-session losing streak, appreciating 0.52% to settle at 287.04.

In a key development, the parliament on Wednesday approved ‘The Elections (Amendment) Bill, 2023’ with several amendments in Election Act, 2017, delegating additional powers to the caretaker government to take actions or decisions regarding existing bilateral or multilateral agreements or the projects already initiated.

Globally, the US dollar was on the backfoot on Thursday after the Federal Reserve delivered what some expected to be its last rate hike, while market focus shifted across the Atlantic to the European Central Bank’s (ECB) rate decision later in the day.

The Fed on Wednesday raised interest rates by a quarter of a percentage point, as expected, marking the central bank’s 11th rate increase in its last 12 meetings.

While Fed Chair Jerome Powell left the door open to another hike in September, traders were unconvinced, sending the US dollar broadly lower.

The dollar index was last 0.04% lower at 101.06, away from a two-week top of 101.65 hit earlier in the week, though its losses were muted as money markets had already priced in Wednesday’s 25-basis-point increase.

Oil prices, a key indicator of currency parity, climbed almost 1% on Thursday, recouping losses from the previous session, supported by supply tightness owing to OPEC+ production cuts and renewed optimism on the outlook for Chinese demand and global growth.

Inter-bank market rates for dollar on Thursday

BID Rs 286.35

OFFER Rs 286.55

Open-market movement

In the open market, the PKR gained 1.00 rupee for both buying and selling against USD, closing at 288.00 and 291.00, respectively.

Against Euro, the PKR gained 1.00 rupee for both buying and selling, closing at 317.00 and 320.00, respectively.

Against UAE Dirham, the PKR gained 50 paisa for both buying and selling, closing at 80.20 and 81.00, respectively.

Against Saudi Riyal, the PKR gained 30 paisa for both buying and selling, closing at 77.00 and 77.70, respectively.

Open-market rates for dollar on Thursday

BID Rs 288.00

OFFER Rs 291.00