Inter-bank: rupee sees fifth consecutive decline against US dollar

The Pakistani rupee witnessed its fifth successive decline against the US dollar as it depreciated 0.17% in the inter-bank market on Friday.

As per the State Bank of Pakistan (SBP), the rupee settled at 280.57, a decrease of Re0.48.

On Thursday, the rupee had depreciated 0.07% to settle at 280.09 against the US dollar.

In a related development, the Ministry of Finance has finalised its directions on negotiations related to the ongoing International Monetary Fund (IMF) programme with instructions to secretaries and the deputed focal persons to remain available in Islamabad till the finalisation of the Staff Level Agreement (SLA), well-informed sources told Business Recorder.

Globally, the US dollar was headed for a weekly gain on Friday, aided by solid US growth figures that bolstered the case for higher-for-longer interest rates, while the yen hovered on the weaker side of 150 per dollar ahead of a key policy meeting next week.

The US economy grew at its fastest pace in nearly two years in the third quarter as higher wages from a tight labor market helped to power consumer spending, data on Thursday showed.

That added to bets the Federal Reserve is likely to keep monetary conditions restrictive for longer, driving the dollar broadly higher against a basket of currencies.

The US dollar index steadied at 106.57, having hit a three-week high of 106.89 in the previous session, and was on track for a weekly gain of about 0.4%.

Oil prices, a key indicator of currency parity, rose by over $1 on Friday as reports that the U.S military struck Iranian targets in Syria raised concerns of a widening of the Israel-Hamas conflict that could impact supply from the key Middle East producing region.

Inter-bank market rates for dollar on Friday

BID                            Rs 280.55

OFFER                      Rs 280.75

Open-market movement

In the open market, the PKR gained 50 paisa for both buying and selling against USD, closing at 278.50 and 281.50, 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 20 paisa for both buying and selling, closing at 78.50 and 79.20, respectively.

Against Saudi Riyal, the PKR lost 30 paisa for both buying and selling, closing at 74.80 and 75.50, respectively.

Open-market rates for dollar on Friday

BID                            Rs 278.50

OFFER                      Rs 281.50