PKR gains ground against US dollar, closes at Rs283.26

The Pakistani rupee (PKR) continued its positive trajectory against the US dollar (USD) for the fourth consecutive session, appreciating by 0.09 per cent in the inter-bank market on Friday.

According to the State Bank of Pakistan (SBP), the rupee concluded at Rs283.26, reflecting an increase of Re0.25.

Interbank closing #ExchangeRate for today https://t.co/3Pw3Af5ceW #SBPExchangeRate pic.twitter.com/vlKwWdyOfH

— SBP (@StateBank_Pak) December 15, 2023

Thursday witnessed a marginal gain in the rupee, settling at Rs283.51 against the US dollar.

The ongoing optimism is buoyed by the recently released trade figures for November, revealing a noteworthy 13.16 per cent month-over-month (MoM) and a substantial 31.72 per cent year-over-year (YoY) reduction in the trade deficit, amounting to $1.89 billion.

Export figures exhibited a robust 7.66 per cent YoY surge, reaching $2.57 billion, while imports saw a YoY decline of 14.47 per cent, totaling $4.46 billion.

On the global front, the US dollar remained near four-month lows on Friday, influenced by the increasing likelihood of US interest rate cuts in the coming year.

Conversely, the euro and pound found support as their respective central banks reiterated the necessity for sustained higher interest rates.

Amid an eventful week for central banks, clarity emerged regarding the potential timing of interest rate cuts following Federal Reserve Chair Jerome Powell’s statement during Wednesday’s meeting.

Powell suggested that the tightening of monetary policy is likely concluding, with discussions about cuts coming “into view.”

The Fed’s projections imply a 75-basis-point cut next year from the current level, leading to a broad decline of the greenback against its counterparts.

The dollar index stands at 102.05, not far from the four-month low of 101.76 observed on Thursday, marking a 1.9 per cent decrease and its most significant weekly decline since July.

Oil prices, a pivotal indicator of currency dynamics, saw an increase on Friday, set to achieve their first weekly rise in two months.

This positive shift is attributed to a bullish forecast from the International Energy Agency (IEA) regarding oil demand for the upcoming year, coupled with a weaker dollar.

Brent futures rose by 21 cents to $76.82 a barrel at 0918 GMT, while US West Texas Intermediate (WTI) crude also experienced a 21-cent climb, reaching $71.79.