The Pakistani rupee registered significant losses against the US dollar, as it depreciated 1.16% in the inter-bank market on Wednesday.

As per the State Bank of Pakistan (SBP), the rupee settled at 280.29 after a decrease of Rs3.26 in the inter-bank market.

On Tuesday, the rupee ended its 28-session appreciation run, as the currency depreciated 0.07% to settle at 277.03.

The decline comes amid “higher demand for the dollars to make upcoming foreign payments,” said Tresmark Finance in a note.

Meanwhile, Shabbar Zaidi, ex-chairman Federal Board of Revenue (FBR), termed the US dollar hike as ‘artificial’ and urged the authorities to take immediate action.

“Names of all persons buying from Exchange Companies regularly and frequently to be communicated to State Bank (SBP) and FBR. EC’s sale of US dollars to be inspected daily by SBP staff. Intelligence agencies to be activated,” said Zaidi on Wednesday on a post on social media platform X, formerly known as Twitter.

Internationally, the US dollar stood its ground on Wednesday, though it struggled for further headway despite strong US retail sales data, as traders turned their attention to looming Chinese growth figures and the escalating violence in the Middle East. A blast at a Gaza hospital dealt a blow to hopes the conflict could be contained.

The benchmark 10-year Treasury yield has climbed about 100 basis points since mid July, and the dollar index is up 7% in the same period.

Oil prices, a key indicator of currency parity, surged on Wednesday as tension escalated in the Middle East after hundreds were killed in a blast at a Gaza hospital, sparking concerns about oil supply disruptions from the region.

Inter-bank market rates for dollar on Wednesday

BID                            Rs 280.30

OFFER                      Rs 280.50

Open-market movement

In the open market, the PKR lost 4.00 rupees for both buying and selling against USD, closing at 278.00 and 281.00, respectively.

Against Euro, the PKR lost 2.00 rupees for both buying and selling, closing at 293.00 and 296.00, respectively.

Against UAE Dirham, the PKR remained unchanged for both buying and selling, closing at 76.00 and 76.75, respectively.

Against Saudi Riyal, the PKR lost 1.40 rupee for buying and 1.50 rupee for selling, closing at 74.70 and 75.50, respectively.

Open-market rates for dollar on Wednesday

BID                            Rs 278.00

OFFER                      Rs 281.00