US dollar drops further against PKR

KARACHI: The US dollar (USD) dropped further against the Pakistani rupee (PKR) as it closed at Rs295.95 in the interbank trading, ARY News reported on Monday.

Interbank closing #ExchangeRate for today https://t.co/R10GSUANIt#SBPExchangeRate pic.twitter.com/p93dfXrbZL

— SBP (@StateBank_Pak) September 18, 2023

Pakistani rupee (PKR) gained Rs0.90 against the US dollar in the interbank trading and closed at Rs295.95 as compared to the September 15 rate, 296.85.

According to the forex dealers, the greenback is being traded at Rs297 in the open market whereas, the banks traded the greenback to importers at Rs296.45.

It is pertinent to mention here that the US Dollar (USD) index hit its highest level in six months on September 14, as economic data was mostly stronger than anticipated and the European Central Bank (ECB) signaled it was finished with its rate hike cycle.

U.S. retail sales increased by 0.6% in August, more than the expected 0.2% rise, boosted by higher gasoline prices while weekly initial jobless claims rose to 220,000 but were below the 225,000 forecast.

Rising gasoline prices also affected the latest inflation data, as the producer price index for final demand rose by 0.7% last month, the most in more than a year, and higher than the 0.4% estimate.

The dollar index was last up 0.5% at 105.18, just off the 105.31 level hit earlier in the day, its highest since March 10.

The euro slumped against the dollar after ECB raised its key interest rate to a record high of 4% on Thursday but indicated this was likely to be its final move in a more than year-long fight against inflation as the euro zone economy continues to stagger. The euro was down 0.64% at $1.0655 after falling to $1.0651, its weakest since May 31.