Inter-bank: rupee registers eighth consecutive decline against US dollar

The Pakistani rupee maintained its downward trajectory against the US dollar for the eighth consecutive session as it depreciated 0.42% in the inter-bank market on Wednesday.

As per the State Bank of Pakistan (SBP), the rupee settled at 282.65, a decrease of Rs1.18.

On Tuesday, the rupee had depreciated 0.18% to settle at 281.47 against the US dollar.

In a related development, Pakistan and the International Monetary Fund (IMF) will begin crucial discussions on the first review of the $3 billion Stand-by-Arrangement (SBA) from tomorrow (Thursday) amid the government’s claim that all targets have already been met.

An official of Finance Ministry sounded confident about successful completion of the first review (July-September 2023) under $3 billion SBA.

However, external financing needs may come under sharp focus during the review, as the budgeted $4.5 billion loans from foreign commercial banks and $1.5 billion through the issuance of Eurobonds for the current fiscal year have yet to materialise.

Globally, the yen fell about 1.7% overnight against the US dollar, touching a low of 151.74 - a whisker from the 151.94 level that prompted intervention a year ago.

The US data showed wages and salaries rose solidly last quarter and while consumer confidence ebbed, it fell far less than markets had expected.

The US dollar index measure against a basket of major currencies rose 0.5% on Tuesday to 106.66.

Oil prices, a key indicator of currency parity, edged up in Asian trade on Wednesday ahead of key meetings of global central banks this week, including the US Federal Reserve, while the market closely watched the latest developments in the Israel-Hamas conflict.

Inter-bank market rates for dollar on Wednesday

BID                            Rs 282.65

OFFER                      Rs 282.85

Open-market movement

In the open market, the PKR lost 50 paisa for both buying and selling against USD, closing at 280.50 and 283.50, respectively.

Against Euro, the PKR remained unchanged for both buying and selling, closing at 295.00 and 298.00, respectively.

Against UAE Dirham, the PKR lost 30 paisa for both buying and selling, closing at 78.80 and 79.50, respectively.

Against Saudi Riyal, the PKR lost 20 paisa for both buying and selling, closing at 75.00 and 75.70, respectively.

Open-market rates for dollar on Wednesday

BID                            Rs 280.50

OFFER                      Rs 283.50