The Pakistani rupee sustained losses against the US dollar as it depreciated 0.16% in the inter-bank market on Wednesday.

As per the State Bank of Pakistan (SBP), the rupee settled at 279.88, a decrease of Re0.45.

On Tuesday, the rupee had depreciated 0.11% to settle at 279.43 against the US dollar.

In a related development, the State Bank of Pakistan (SBP) said it is expecting improvement in the inflows of remittances to Pakistan in the future amid a significant increase in labour migration.

Pakistan witnessed a surge in labour migration in FY22 and FY23 compared to the preceding two years. Some 0.8 million Pakistani workers were registered through Bureau of Emigration and Overseas Employment (BEOE) and Overseas Employment Corporation (OEC) during FY23.

Internationally, the US dollar was on the frontfoot on Wednesday, drawing support from yet another resilient US economic data reading, while the euro struggled to make headway on the back of a darkening growth outlook in the bloc.

US business output ticked higher in October as the manufacturing sector pulled out of a five-month contraction, data on Tuesday showed, while separate data released the same day showed the euro zone’s business activity in contrast took a surprise turn for the worse this month.

Against the dollar, the euro was last 0.05% higher at $1.0595, having declined 0.75% on Tuesday.

The single currency’s slide lifted the dollar index and it last steadied at 106.23, away from a one-month low of 105.35 hit in the previous session.

Oil prices, a key indicator of currency parity, held above $88 on Wednesday as concerns about war escalating in the Middle East offset demand worries stemming from gloomy economic prospects in Europe.

Inter-bank market rates for dollar on Wednesday

BID                            Rs 279.90

OFFER                      Rs 280.10

Open-market movement

In the open market, the PKR lost 50 paisa for both buying and selling against USD, closing at 279.00 and 282.00, respectively.

Against Euro, the PKR remained unchanged for both buying and selling, closing at 294.00 and 297.00, respectively.

Against UAE Dirham, the PKR lost 20 paisa for buying and 1.15 rupee for selling, closing at 78.20 and 79.90, respectively.

Against Saudi Riyal, the PKR remained unchanged for both buying and selling, closing at 74.30 and 75.00, respectively.

Open-market rates for dollar on Wednesday

BID                            Rs 279.00

OFFER                      Rs 282.00