13th consecutive gain: rupee settles at 291.76 against US dollar

The Pakistani rupee maintained its momentum for the 13th consecutive session against the US dollar, gaining another 0.35% in the inter-bank market on Friday.

As per the State Bank of Pakistan (SBP), the rupee settled at 291.76 after an increase of Rs1.02 in the inter-bank market.

On Thursday, the rupee had appreciated 0.38% to settle at 292.78.

The rupee has maintained its upward trajectory in recent days and recovered 5.25% or Rs15.34 since hitting a record low of 307.1 against the US dollar in the inter-bank market on September 5.

In a related development, the central bank on Thursday announced an increase in financial incentives for banks, Microfinance Banks and ECs to bring more home remittances into the country.

Under these incentives, the SBP has increased the performance-based cash incentive up to Rs3 per USD on 15% growth in home remittances during this fiscal year.

Internationally, the US dollar stood near a six-month peak on the prospect of higher-for-longer US rates.

While the Fed kept interest rates steady this week, it signalled the possibility of another hike this year, with rates to be kept significantly tighter through 2024 than previously expected.

The US dollar rode Treasury yields higher and against a basket of currencies, the greenback gained 0.1% to 105.50, not far from the previous session’s six-month high of 105.74.

Oil prices, a key indicator of currency parity, rose on Friday as renewed global supply concerns from Russia’s fuel export ban counteracted demand fears driven by macroeconomic headwinds and high-interest rates.

Inter-bank market rates for dollar on Friday

BID Rs 291.75

OFFER Rs 291.95

Open-market movement

In the open market, the PKR gained 2.50 rupees for both buying and selling against USD, closing at 290.50 and 293.50, respectively.

Against Euro, the PKR gained 3.00 rupees for both buying and selling, closing at 312.00 and 315.00, respectively.

Against UAE Dirham, the PKR remained unchanged for both buying and selling, closing at 82.00 and 82.80, respectively.

Against Saudi Riyal, the PKR gained 20 paisa for buying and 30 paisa for selling, closing at 78.00 and 78.70, respectively.

Open-market rates for dollar on Friday

BID Rs 290.50

OFFER Rs 293.50