RECORDER REPORT
KARACHI: The Pakistani rupee maintained its positive momentum against the US dollar for the second straight session, appreciating 0.25% in the inter-bank market on Wednesday.
As per the State Bank of Pakistan (SBP), the rupee settled at 283.20, a gain of Re0.72. Despite the improvement, the rupee has lost over 20% of its value against the greenback during this calendar year.
A day earlier, the rupee had registered a minor gain, settling at 283.92 against the dollar in the inter-bank market, an increase of Re0.11 or 0.04%.
The market, however, lies in wait for resumption of the International Monetary Fund (IMF) Extended Fund Facility (EFF), which has remained stalled since November last year.
Bloomberg economists Ankur Shukla and Abhishek Gupta wrote in a report that “Pakistan is careening toward a potential default as soon as June unless it secures aid from the IMF” and noted that the South Asian nation would require another programme to avoid default in the next fiscal year.
Globally, the US dollar was pinned near five-week lows on Wednesday ahead of the conclusion of the US Federal Reserve’s policy meeting, with investors awaiting clarity on the path the central bank is likely to take in the wake of global banking turmoil.
Investor attention is zeroed in on whether the Fed will stick to its hawkish path to fight sticky inflation or pause interest rate hikes given recent trouble among banks which have included bankruptcy and last-minute rescues.
The US dollar index, which measures the currency against six peers, was at 103.22, just above the five-week low of 102.99 touched overnight.
Oil prices, a key currency indicator, slipped in Asian trade on Wednesday, after two straight days of gains, as an industry report showed US crude inventories rose unexpectedly last week in a sign demand may be weakening.
Open-market movement
In the open market, the PKR lost 50 paisa for both buying and selling against USD, closing at 283 and 286, respectively.
Against Euro, the PKR lost 1 rupee for both buying and selling, closing at 302 and 305 respectively.
Against UAE Dirham, the PKR lost 10 paisa for both buying and selling, closing at 77.20 and 77.90, respectively.
Against Saudi Riyal, the PKR gained 30 paisa for both buying and selling, closing at 75.00 and 75.70, respectively.
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Open Bid Rs 283.00
Open Offer Rs 286.00
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Interbank Closing Rates: Interbank Closing Rates For Dollar on Wednesday
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Open Bid Rs 283.20
Open Offer Rs 285.50
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RUPEE IN LAHORE: Pakistani rupee lost its value against the US dollar in the local market on Wednesday.
Pakistan’s forex reserves saw a boost from Chinese inflows which help the country to avert default however the cash-strapped nation is awaiting the resumption of stalled International Monetary Fund (IMF) programme.
As the economic uncertainty looms, IMF Resident Representative Office in Pakistan Esther Pérez Ruiz mentioned some more challenges for Pakistan before the release of bailout funds.
The currency dealers said the rupee lost against dollar for buying and selling at Rs283.50 and Rs285.50 against the previous close of Rs282.00 and Rs285.00, respectively.
The national currency faced a similar fate against the pound sterling at Rs344.00 and Rs347.00 against the previous close of Rs342.00 and Rs345.00 respectively, they added.
Copyright Business Recorder, 2023
