Rupee settles at 221.64 against US dollar

Pakistan's rupee ended its three-session appreciation run against the US dollar, and declined 0.1% in the inter-bank market.

As per the State Bank of Pakistan (SBP), the rupee closed at 221.64 after a depreciation of Re0.22.

On Thursday, rupee had registered a gain for the third consecutive session against the US dollar, and closed at 221.42 after an appreciation of Re0.23 or 0.1%.

In a key development, foreign exchange reserves held by the State Bank of Pakistan (SBP) plunged $956 million on a weekly basis, clocking in $7.96 billion as of November 4, 2022, as per data released on Thursday.

Meanwhile, total liquid foreign reserves held by the country stood at $13.72 billion. The reserves' position is critical for Pakistan as the cash-strapped South Asian economy is desperately seeking dollar inflows to meet its balance-of-payments needs. A low level of forex reserves has also put pressure on the currency that has only seen stability in recent days.

Globally, the dollar languished on Friday after US inflation data came in cooler than expected, raising market hopes that inflation may have peaked and that the Federal Reserve will begin scaling back its hefty interest rate increases.