Interbank closing: Pakistani rupee bounces back, surges against US dollar

WEB DESK: In a noteworthy rebound following consecutive losses, the Pakistani rupee demonstrated resilience against the US dollar, appreciating by 0.53 per cent in the interbank market on Thursday.

According to the State Bank of Pakistan (SBP), the rupee settled at Rs278.81 after a notable increase of Rs1.48 in the inter-bank market.

Interbank closing #ExchangeRate for todayhttps://t.co/2GDqC1a99h#SBPExchangeRate pic.twitter.com/kTExYSKPqS

— SBP (@StateBank_Pak) October 19, 2023

This positive development followed a significant setback on Wednesday when the rupee experienced a depreciation of 1.16 per cent, leading it to settle at Rs280.29.

On the global front, the US dollar maintained its position against the yen near a two-week low.

This was attributed to growing expectations that the US Federal Reserve would prolong higher interest rates.

The greenback and US Treasury yields rose overnight, while the financial markets eagerly anticipated a speech by Fed Chair Powell.

Read more: Paper shortage halts passport processing in Pakistan

In the currency markets, the dollar index, which gauges the dollar’s performance against a basket of currencies, remained stable, hovering near Wednesday’s high of 106.63 during the Asian trading session.

Additionally, oil prices, a crucial indicator of currency stability, experienced a decline on Thursday, reversing previous gains. This shift occurred after OPEC exhibited no indications of supporting Iran’s call for an oil embargo on Israel.