Rupee stable against dollar at 294.92 in inter-bank market

The Pakistan rupee’s fall against the US dollar halted after four consecutive losses, as the currency remained largely stable on Thursday.

At close, the rupee settled at 294.92, an increase of Re0.01, as per the State Bank of Pakistan (SBP).

On Wednesday, the rupee closed to its weakest level since May 11 this year against the US dollar, as it depreciated 1.16% to settle at 294.93 in the inter-bank.

In a key development, former State Bank of Pakistan (SBP) governor Dr Shamshad Akhtar was appointed caretaker finance minister.

The development comes as the process of appointing key members of the cabinet under caretaker prime minister Anwaar-ul-Haq continues amid widespread speculation.

Globally, the US dollar pushed the yen deeper into intervention territory on Thursday as a resilient US economy underscored the need for higher-for-longer interest rates, while a strikingly ultra-dovish Bank of Japan struggled to defend its policy stance.

Although most money markets expect the Federal Reserve to keep interest rates on hold in September, with some betting that the central bank may already have completed its tightening cycle, a recent run of resilient US economic data has reinforced the view that interest rates will remain at restrictive levels for some time.

Data on Wednesday showed that US single-family homebuilding surged in July and permits for future construction rose, while a separate report revealed production at US factories unexpectedly rebounded last month.

The US dollar index touched a two-month high of 103.59.

Oil prices, a key indicator of currency parity, were choppy on Thursday after falling over the past three sessions, with the undertone grim on worries that slowing growth in China and possible further US interest rate hikes will weaken fuel demand in the world’s two biggest economies.

Inter-bank market rates for dollar on Thursday

BID                            Rs 294.80

OFFER                      Rs 295.00

Open-market movement

In the open market, the PKR gained 1.50 rupee for both buying and selling against USD, closing at 298.00 and 301.00, respectively.

Against Euro, the PKR remained unchanged for both buying and selling, closing at 324.00 and 327.00, respectively.

Against UAE Dirham, the PKR lost 20 paisa for both buying and selling, closing at 82.90 and 83.70, respectively.

Against Saudi Riyal, the PKR lost 25 paisa for buying and 20 paisa for selling, closing at 80.00 and 80.70, respectively.

Open-market rates for dollar on Thursday

BID                            Rs 298.00

OFFER                      Rs 301.00