New low: rupee settles at 301 against US dollar

The Pakistani rupee hit a new record low against the US dollar, as it settled at 301 in the inter-bank market on Friday.

At close, the rupee settled at 301 after a decrease of Re0.78 or 0.26%, as per the State Bank of Pakistan (SBP).

On Thursday, the rupee had closed at the then-record low against the US dollar at 300.22.

In a key development, Caretaker Federal Minister for Commerce and Industries Dr Gohar Ejaz on Thursday stressed the need for early operationalisation of the EXIM Bank for enhancing Pakistan’s exports.

The enhancement of exports is critical as Pakistan struggles with low foreign exchange reserves.

The central-bank held foreign exchange reserves decreased by $125 million on a weekly basis, clocking in at $7.93 billion as of August 18, on account of debt repayments, data released on Thursday showed.

Internationally, the US dollar sat at an over two-month peak on Friday, on course for its sixth straight week of gains as markets await a speech from Federal Reserve Chair Jerome Powell to gauge the path of monetary policy.

Investors will parse through Powell’s address on monetary policy at the Jackson Hole Economic Policy Symposium at 10:05 a.m. ET (1405 GMT) to better understand whether the Fed is done with rate hikes and how long it plans to keep rates elevated.

The dollar index, which measures the US currency against six rivals, rose 0.019% to 104.11, the highest since June 7. The index is up 2% in August and set to snap its two-month losing streak.

Oil prices, a key indicator of currency parity, jumped more than 1% on Friday as the dollar firmed ahead of an eagerly awaited speech by the head of the US Federal Reserve for hints on the outlook for interest rates.

Inter-bank market rates for dollar on Friday

BID                            Rs 300.80

OFFER                      Rs 301.05

Open-market movement

In the open market, the PKR remained unchanged for both buying and selling against USD, closing at 311.00 and 314.00, respectively.

Against Euro, the PKR gained 2.00 rupees for both buying and selling, closing at 336.00 and 339.00, respectively.

Against UAE Dirham, the PKR remained unchanged for both buying and selling, closing at 86.20 and 87.00, respectively.

Against Saudi Riyal, the PKR remained unchanged for both buying and selling, closing at 83.20 and 84.00, respectively.

Open-market rates for dollar on Friday

BID                            Rs 311.00

OFFER                      Rs 314.00