Inter-bank: rupee records ninth successive fall against US dollar

The Pakistani rupee lost value against the US dollar for the ninth successive session as it depreciated 0.28% in the inter-bank market on Thursday.

As per the State Bank of Pakistan (SBP), the rupee settled at 283.43, a decrease of Re0.78.

On Wednesday, the rupee had depreciated 0.42% to settle at 282.65 against the US dollar.

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

Globally, the US dollar fell broadly on Thursday, tracking a slide in US Treasury yields as markets grew more convinced the Federal Reserve was done with its aggressive monetary policy tightening cycle after it left rates unchanged.

The Fed on Wednesday held interest rates steady as widely expected, as policymakers struggled to determine whether financial conditions may be sufficiently tight to control inflation.

However, Fed Chair Jerome Powell acknowledged that a recent market-driven rise in Treasury bond yields, home mortgage rates and other financing costs could have their own impact on the economy as long as they persist.

The dollar edged broadly lower alongside US Treasury yields which touched multi-week lows in early Asia trade.

The US dollar index fell 0.11% to 106.34.

Oil prices, a key indicator of currency parity, gained 1% on Thursday to snap its three-day decline, as risk appetite returned to financial markets after the US Federal Reserve kept benchmark interest rates on hold.

Brent crude futures rose $1.28, or 1.51%, to $85.91 a barrel by 0944 GMT, while US West Texas Intermediate crude futures gained $1.33, or 1.65%, to $81.77 a barrel.

Inter-bank market rates for dollar on Thursday

BID                            Rs 283.45

OFFER                      Rs 283.65

Open-market movement

In the open market, the PKR lost 1.00 rupee for both buying and selling against USD, closing at 281.50 and 284.50, respectively.

Against Euro, the PKR lost 2.00 rupees for both buying and selling, closing at 297.00 and 300.00, respectively.

Against UAE Dirham, the PKR lost 20 paisa for both buying and selling, closing at 79.00 and 79.70, respectively.

Against Saudi Riyal, the PKR lost 30 paisa for both buying and selling, closing at 75.30 and 76.00, respectively.

Open-market rates for dollar on Thursday

BID                            Rs 281.50

OFFER                      Rs 284.50