Inter-bank: rupee sees further decline against US dollar

The Pakistani rupee registered its fourth consecutive decline against the US dollar as it depreciated 0.07% in the inter-bank market on Thursday.

As per the State Bank of Pakistan (SBP), the rupee settled at 280.09, a decrease of Re0.21.

On Wednesday, the rupee had depreciated 0.16% to settle at 279.88 against the US dollar.

In a related development, the SBP imposed penalties worth Rs83.2 million on four banks during the quarter ending September 30, 2023, for non-compliance with legal or regulatory requirements.

Globally, the US dollar was firm on Thursday, hovering near a one-week high as Treasury yields rose and investor appetite for riskier currencies dimmed, while the yen breached 150 per dollar to keep traders jittery about the prospect of intervention.

US GDP data due later on Thursday is a key event risk for dollar/yen, according to Carol Kong, currency strategist at Commonwealth Bank of Australia, who said a strong report may pressure US yields higher and result in the yen testing fresh lows.

Against a basket of currencies, the dollar was at 106.58, just shy of the one-week high of 106.61 it touched on Wednesday.

Oil prices, a key indicator of currency parity, fell on Thursday after a rise in US crude stockpiles and a climb in the dollar index, giving up some ground gained a day earlier when prices jumped on Middle East tensions.

Brent crude futures declined by 67 cents, or 0.7%, to $89.46 a barrel at 0630 GMT. US West Texas Intermediate crude futures eased 71 cents, or 0.8%, to $84.68 a barrel.

Inter-bank market rates for dollar on Thursday

BID                            Rs 280.10

OFFER                      Rs 280.30

Open-market movement

In the open market, the PKR remained unchanged for both buying and selling against USD, closing at 279.00 and 282.00, respectively.

Against Euro, the PKR remained unchanged for both buying and selling, closing at 294.00 and 297.00, respectively.

Against UAE Dirham, the PKR lost 10 paisa for buying and gained 90 paisa for selling, closing at 78.30 and 79.00, respectively.

Against Saudi Riyal, the PKR lost 20 paisa for both buying and selling, closing at 74.50 and 75.20, respectively.

Open-market rates for dollar on Thursday

BID                            Rs 279.00

OFFER                      Rs 282.00