Inter-bank: rupee registers 7th consecutive gain against US dollar

The Pakistani rupee continued to gain against the US dollar for the seventh consecutive session as it appreciated 0.08% in the inter-bank market on Wednesday.

As per the State Bank of Pakistan (SBP), the rupee settled at 284.14 after an increase of Re0.24.

On Tuesday, the rupee had registered a marginal gain to settle at 284.38 against the US dollar.

In a related development, the federal government’s total debt (domestic and external) stocks increased by Rs1.641 trillion during the first four months of this fiscal year (FY24), the State Bank of Pakistan (SBP) reported on Tuesday.

According to the SBP, the central government’s total domestic and external debt stocks rose by 2.7% during Jul-Oct of this fiscal year. With this increase, cumulatively, the federal government’s total debt stocks rose to Rs62.482 trillion by the end of October 2023 compared to Rs60.841 trillion by the end of June 2023.

Globally, the US dollar was near a two-week high against a basket of currencies on Wednesday as investors assessed US economic data that showed a cooling labour market, while wagering the Federal Reserve will cut rates next year.

The dollar index, which measures the US currency against six rivals, was 0.019% higher at 103.99, having climbed 0.3% overnight.

The index is up 0.5% this month, after sliding 3% in November, its steepest monthly decline in a year.

Data on Tuesday showed that US job openings fell to more than a 2-1/2-year low in October, the strongest sign yet that higher interest rates were dampening demand for workers.

Data also showed there were 1.34 vacancies for every unemployed person in October, the lowest since August 2021.

The focus will now shift to the Friday release of the November jobs report to provide clues on the strength of the economy ahead of the Fed’s policy meeting next week.

Oil prices, a key indicator of currency parity, rose slightly in Asian trade on Wednesday, after posting losses for four sessions, as investors weighed the effectiveness of an extension in OPEC+ cuts on tightening supplies against worries of a worsening demand outlook in China.

Brent crude futures climbed 17 cents to $77.37 a barrel by 0709 GMT. US WTI crude futures rose by 6 cents to $72.38 a barrel.

Inter-bank market rates for dollar on Wednesday

BID                            Rs 284.15

OFFER                      Rs 284.35

Open-market movement

In the open market, the PKR gained 25 paisa for both buying and selling against USD, closing at 282.00 and 285.00, respectively.

Against Euro, the PKR gained 2.00 rupees for both buying and selling, closing at 303.00 and 306.00, respectively.

Against UAE Dirham, the PKR gained 20 paisa for both buying and selling, closing at 77.10 and 77.80, respectively.

Against Saudi Riyal, the PKR gained 20 paisa for both buying and selling, closing at 75.10 and 75.80, respectively.

Open-market rates for dollar on Wednesday

BID                            Rs 282.00

OFFER                      Rs 285.00