- Currency appreciates 0.26% to settle at 287.38 against US dollar
The Pakistani rupee finally ended its 17-session depreciation run against the US dollar, as it appreciated 0.26% in the inter-bank market on Thursday.
As per the State Bank of Pakistan (SBP), the rupee settled at 287.38, an increase of Re0.76.
On Wednesday, the rupee had depreciated 0.09% to settle at 288.14 against the US dollar.
Experts said that the reversal in the rupee’s trajectory comes as Pakistani authorities and the International Monetary Fund (IMF) staff on Wednesday reached a staff-level agreement on the first review under the nine-month $3 billion Stand-By Arrangement (SBA).
The agreement is subject to approval by the IMF’s Executive Board. Upon approval, Pakistan will have access to SDR 528 million (around $700 million), bringing total disbursements under the program to almost $1.9 billion.
Markets analysts said that Pakistan’s foreign exchange reserve position is expected to improve, as the IMF agreement would pave the way for funding from multilateral and bilateral institutions.
Internationally, the US dollar held its ground early on Thursday after a volatile two days that saw sharp declines followed by a rebound as traders took incoming economic data as signalling the Federal Reserve will wait longer before cutting interest rates.
The US currency was little changed at $1.08425 per euro and slipped 0.15% to 151.15 yen after mounting a recovery on Wednesday from its steepest declines against major peers in a year.
The dollar index - which measures the greenback against the euro, yen and four other rivals - added 0.11% to 104.43. It gained 0.31% on Wednesday, following a 1.51% plunge the previous day.
The US dollar drew support from better-than-expected retail sales numbers combined with more signs of a cooling of inflation, feeding into the narrative for an economic ‘soft landing’, which would allow the Fed more time before cutting rates.
Oil prices, a key indicator of currency parity, fell on Thursday, extending losses from the previous session, as signals of higher supply from the United States met worries about lackluster energy demand from China.
Brent futures were down 48 cents at $80.70 a barrel at 0630 GMT.
Inter-bank market rates for dollar on Thursday
BID Rs 287.40
OFFER Rs 287.60
In the open market, the PKR gained 75 paisa for both buying and selling against USD, closing at 285.75 and 288.75, respectively.
Against Euro, the PKR gained 1.00 rupee for both buying and selling, closing at 308.00 and 311.00, respectively.
Against UAE Dirham, the PKR gained 20 paisa for both buying and selling, closing at 78.80 and 79.50, respectively.
Against Saudi Riyal, the PKR gained 40 paisa for both buying and selling, closing at 75.80 and 76.50, respectively.
Open-market rates for dollar on Thursday
BID Rs 285.75
OFFER Rs 288.75