13th straight gain: Rupee continues to appreciate against US dollar

Pakistan’s rupee continued to gain against the US dollar for the 13th successive session, and appreciated nearly 0.1% in the inter-bank market on Tuesday.

As per the State Bank of Pakistan (SBP), the rupee closed at 217.79 after appreciating Re0.18 or 0.08%. In the last thirteen trading sessions, the rupee has cumulatively appreciated Rs21.91 or 10.1%.

On Monday, the rupee maintained its upward trajectory against the US dollar for the 12th successive session, and closed at 217.97 after appreciating Rs1.95 or 0.89%.

In a key development, the central bank’s Monetary Policy Committee (MPC) on Monday kept its key policy rate unchanged at 15%.

On recent strengthening of rupee against the dollar, deputy governor of the State Bank of Pakistan (SBP), Murtaza Syed said there had been no intervention by the central bank, and it was driven by sentiment and economic fundamentals.

However, market experts attribute the recent appreciation of rupee to actions taken by the central bank and other authorities to curb speculation in the market.

On Tuesday, the United Nations Development Programme warned that dozens of developing nations including Pakistan were facing a rapidly deepening debt crisis and that “the risks of inaction are dire”.

UNDP said without immediate relief, at least 54 countries would see rising poverty levels, and “desperately needed investments in climate adaptation and mitigation will not happen”.

The countries at the most immediate risk are Sri Lanka, Pakistan, Tunisia, Chad and Zambia, UNDP’s chief economist George Gray Molina told reporters.

Internationally, the dollar loomed large over fragile financial markets on Tuesday, with worries about rising interest rates, global growth and geopolitical tensions unsettling investors.

US dollar index was up 0.053% at 113.12, not far off the 20-year high of 114.78 it touched late last month.

Oil prices, a key indicator of currency parity, Oil slid more than 1% on Tuesday, extending losses of nearly 2% in the previous session, as recession fears and a rise in COVID-19 cases in China raised concern over global demand.

Inter-bank market rates for dollar on Tuesday

BID Rs 217.90

OFFER Rs 218.90

Open-market movement

In the open market, the PKR gained one rupee for both buying and selling against USD, closing at 217 and 219, respectively.

Against Euro, the PKR gained one rupee for both buying and selling, closing at 213 and 215 respectively.

Against UAE Dirham, the PKR gained 30 paisas for buying and 20 paisas for selling, closing at 59.70 and 60.30, respectively.

Against Saudi Riyal, the PKR remained unchanged for both buying and selling, closing at 58 and 58.50, respectively.

Open-market rates for dollar on Tuesday

BID Rs 217

OFFER Rs 219