Inter-bank: rupee’s appreciation run continues against US dollar

The Pakistani rupee continued its positive run against the US dollar for the fifth consecutive session as it appreciated 0.23% in the inter-bank market on Wednesday.

As per the State Bank of Pakistan (SBP), the rupee settled at 285.13, an increase of Re0.66.

On Tuesday, the rupee registered gains to settle at 285.79 against the US dollar.

In a key development, caretaker Federal Minister for Finance, Revenue and Economic Affairs, Dr Shamshad Akhtar, reported positive signs of economic recovery on Tuesday, expecting GDP growth between 2 to 2.5% in the fiscal year 2024.

Globally, the US dollar index held around 2-1/2-month lows after minutes of the Federal Reserve’s last meeting did little to dislodge market expectations that its monetary tightening cycle was over.

The Fed minutes showed the central bank would proceed “carefully” and that “all participants judged it appropriate to maintain” the current rate setting.

Fed officials agreed that they would only raise interest rates if progress in controlling inflation faltered, reiterating recent comments by policymakers that left the door open for more tightening even as markets have moved to price-in cuts from early next year.

Markets are all but certain that the Fed will hold rates at their December meeting, while pricing in about a 30% chance of a rate cut as early as March, according to CME’s FedWatch Tool.

The dollar index, which measures the greenback against a basket of currencies, was flat at 103.58, near levels last seen in early September but off an overnight session low of 103.17.

Oil prices, a key indicator of currency parity, were largely unchanged in Asian trade on Wednesday as a potentially big build-up of US crude cancelled out gains triggered by likely supply cuts from the OPEC+ producers group.

Brent crude futures rose 11 cents, or 0.1%, to $82.56 a barrel by 0004 GMT. US West Texas Intermediate crude futures rose 14 cents, or 0.2%, to $77.91.

Inter-bank market rates for dollar on Wednesday

BID                            Rs 285.15

OFFER                      Rs 285.35

Open-market movement

In the open market, the PKR gained 75 paisa for both buying and selling against USD, closing at 283.50 and 286.50, respectively.

Against Euro, the PKR remained unchanged for both buying and selling, closing at 308.00 and 311.00, respectively.

Against UAE Dirham, the PKR remained unchanged for both buying and selling, closing at 77.50 and 78.30, respectively.

Against Saudi Riyal, the PKR remained unchanged for both buying and selling, closing at 75.50 and 76.30, respectively.

Open-market rates for dollar on Wednesday

BID                            Rs 283.50

OFFER                      Rs 286.50