Rupee records back-to-back gains, settles at 281.67 against US dollar

The Pakistani rupee registered back-to-back gains against the US dollar, appreciating 0.02% in the inter-bank market on Thursday.

As per the State Bank of Pakistan (SBP), the rupee settled at 281.67 after an increase of Re0.05.

On Wednesday, the rupee had registered a marginal gain to settle at 281.72 against the US dollar.

In a key development, the caretaker government has reportedly prepared a plan to reduce industrial tariff by up to 25% but this requires International Monetary Fund’s (IMF) approval which was previously denied for the winter package, well-informed sources told Business Recorder.

Globally, the US dollar edged higher on Thursday as investors reassessed their expectations of the scale of rate cuts by the Federal Reserve this year, with an air of caution hanging over markets after an impressive risk rally last month.

The greenback was on the front foot in early deals in Asia, as trading returned to full swing with Japan back from an extended New Year break.

Minutes of the Fed’s December policy meeting released on Wednesday showed officials were convinced that inflation was coming under control and were concerned about the risks of the central bank’s “overly restrictive” monetary policy on the economy.

However, there were no clear-cut clues on when the Fed could begin easing rates, with policymakers still seeing a need for rates to stay restrictive for some time.

Against a basket of currencies, the greenback rose 0.06% to 102.46, flirting with a three-week peak of 102.73 hit in the previous session.

Oil prices, a key indicator of currency parity, rose more than 1% on Thursday, adding to gains in the previous session on concerns over Middle Eastern supply following disruptions at an oilfield in Libya and heightened tensions regarding the Israel-Hamas war.

On Wednesday, local protests forced a production shutdown at Libya’s Sharara oilfield, which can produce up to 300,000 barrels per day.

The field, one of Libya’s largest, has been a frequent target for local and broader political protests.

Brent crude rose 92 cents, or 1.2%, to $79.17 a barrel by 0908 GMT, while US West Texas Intermediate crude futures rallied 93 cents, or 1.3%, to $73.63.

Inter-bank market rates for dollar on Thursday

BID Rs 281.67

OFFER Rs 281.87

Open-market movement

In the open market, the PKR lost 16.00 paisa for buying and 11.00 paisa for selling against USD, closing at 280.10 and 282.53, respectively.

Against Euro, the PKR lost 63.00 paisa for buying and 59.00 paisa for selling, closing at 306.45 and 309.29, respectively.

Against UAE Dirham, the PKR lost 9.00 paisa for buying and 8.00 paisa for selling, closing at 76.35 and 77.03, respectively.

Against Saudi Riyal, the PKR lost 10.00 paisa for buying and 11.00 paisa for selling, closing at 74.58 and 75.23, respectively.

Open-market rates for dollar on Thursday

BID Rs 280.10

OFFER Rs 282.53