12th straight decline: PKR closes at Rs286.39 against USD

WEB DESK: In the twelfth consecutive session, the Pakistani rupee experienced a decline against the US dollar, depreciating by 0.38 per cent in the inter-bank market on Tuesday, according to the State Bank of Pakistan (SBP).

The rupee settled at Rs286.39, marking a decrease of Rs1.10. The previous day, it had depreciated by 0.34 per cent, settling at Rs285.29 against the US dollar.

Interbank closing #ExchangeRate for todayhttps://t.co/soXvFXBizB#SBPExchangeRate pic.twitter.com/SFg5k8GYaY

— SBP (@StateBank_Pak) November 7, 2023

Experts attribute this depreciation to the ongoing pressure on the currency due to payment-related issues.

On the global front, the US dollar remained stable on Tuesday, maintaining its gains from the previous day as investors paused amid a risk rally.

Meanwhile, the Australian currency dipped in anticipation of a central bank interest rate decision later in the day.

Asian markets closely watched the Reserve Bank of Australia, which was expected to raise rates by 25 basis points, ending a four-month period of policy decisions being on hold. However, market confidence in this outcome was at 63 per cent.

Federal Reserve Chairman Jerome Powell is scheduled to speak on Wednesday and Thursday, with the focus being on whether he maintains the dovish tone established after the Fed’s policy meeting last week.

The dollar index rose slightly to 105.32, a 0.057 per cent increase, after climbing 0.2 per cent on Monday, though it remained close to a two-month low of 104.84 reached the previous day.

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In the realm of oil prices, a significant factor influencing currency parity, prices hit a fresh 2-1/2-month low on Tuesday due to mixed economic data from China, which counteracted the impact of Saudi Arabia and Russia extending output cuts.

Brent crude futures dropped by $1.65, or 1.94 per cent, to $83.53 a barrel as of 0920 GMT, while US West Texas Intermediate crude stood at $79.21 a barrel, down $1.61, or 1.99 per cent.