Interbank closing: Pakistani rupee witnesses 15th consecutive decline

WEB DESK: In its 15th consecutive session, the Pakistani rupee sustained losses against the US dollar, depreciating by 0.18 per cent in the interbank market on Friday, according to the State Bank of Pakistan (SBP).

The rupee settled at Rs287.55, marking a decrease of Re0.52.

Interbank Closing
PKR Continues to Lose Ground!
The Pakistani Rupee lost PKR 0.5194 (0.18%) against the US Dollar on DoD basis ending the session at PKR 287.5498/US$.#economy #forex #ExchangeRate #Dollar #Currency #Pakistan pic.twitter.com/oKSh9gfn3r

— Capital Stake (@CapitalStake) November 13, 2023

During the preceding week, the rupee continued its downward trend against the US dollar, experiencing a depreciation of 0.95 per cent, or Rs2.72.

This resulted in a settlement of Rs287.03 in the interbank market. This marks the fourth consecutive week of decline, with the local currency collectively down by 3.3 per cent, or Rs9.41, since October 13.

Previously, the Pakistani rupee had maintained a positive closure for 28 successive sessions, representing one of the longest appreciation runs.

It had cumulatively gained 10.93 per cent since reaching a record low of 307.1 in the interbank market on September 5.

In the international arena, Pakistan and the International Monetary Fund (IMF) are expected to commence policy-level discussions from November 13 (today) onwards.

Globally, the US dollar remained stable on Monday, with traders awaiting additional inflation data from the United States.

Read more: Gas shortage: Rawalpindi residents turn to costly alternatives for daily meals

This data, anticipated later in the week, is expected to provide further insights into whether the Federal Reserve will need to take additional measures to curb inflation.

Most traders are focusing on the US consumer price index (CPI) numbers, scheduled for release on Tuesday, after the Fed’s recent policy meeting moderated its hawkish stance.

However, Fed Chair Jerome Powell indicated last week that the fight against inflation may not be concluded.

The dollar index, which gauges the dollar against a basket of currencies, was mostly flat at 105.80 in the latest update.

Oil prices, a crucial indicator of currency parity, fluctuated on Monday due to renewed concerns about diminishing demand in the United States and China.

Additionally, mixed signals from the US Federal Reserve contributed to market uncertainty.