After back-to-back losses, the Pakistani rupee staged a recovery against the US dollar, as it appreciated 0.53% in the inter-bank market on Thursday.
As per the State Bank of Pakistan (SBP), the rupee settled at 278.81 after an increase of Rs1.48 in the inter-bank market.
On Wednesday, the rupee sustained significant losses, as the currency depreciated 1.16% to settle at 280.29.
Globally, the US dollar held the yen near a two-week low, as growing expectations that the US Federal Reserve will keep rates higher for longer had the greenback and US Treasury yields on the rise overnight and markets awaited a speech by Fed Chair Powell.
Fed Governor Christopher Waller and John Williams were among the latest US central bank officials to make comments this week, with the Fed’s October 31 - Nov. 1 monetary policy meeting fast approaching.
Waller, who is one of the Fed’s most hawkish members, said he wants to “wait, watch and see” if the US economy continues its run of strength or weakens in the face of interest rate hikes to date.
The dollar index, which measures the dollar against a basket of currencies, held steady near Wednesday’s high of 106.63 in the Asian morning.
Oil prices, a key indicator of currency parity, fell on Thursday, reversing gains in the previous session, after OPEC showed no signs of supporting Iran’s call for an oil embargo on Israel and as the United States plans to ease Venezuela sanctions to allow more oil to flow globally.
Brent futures for December fell 74 cents to $90.76 a barrel.
Inter-bank market rates for dollar on Thursday
BID Rs 278.80
OFFER Rs 279.00
Open-market movement
In the open market, the PKR gained 1.00 rupee for both buying and selling against USD, closing at 277.00 and 280.00, respectively.
Against Euro, the PKR remained unchanged for both buying and selling, closing at 293.00 and 296.00, respectively.
Against UAE Dirham, the PKR lost 1.00 rupee for both buying and selling, closing at 77.00 and 77.75, respectively.
Against Saudi Riyal, the PKR gained 20 paisa for buying and 30 paisa for selling, closing at 74.50 and 75.20, respectively.
Open-market rates for dollar on Thursday
BID Rs 277.00
OFFER Rs 280.00