Rupee registers marginal dip against US dollar

The Pakistani rupee registered a marginal loss against the US dollar, depreciating 0.06% in the inter-bank market on Monday.

As per the State Bank of Pakistan (SBP), the currency closed at 269.44 against the US dollar, a decrease of Re0.16. The currency has depreciated by 23.3% during the ongoing fiscal year against the greenback.

During the previous week, the currency had appreciated 2.71% against the US dollar to close at Rs269.28 in the inter-bank market.

The rise is attributed to recent correction of exchange rate following the end of the peg on dollar. Exporters are also selling their dollars in the market as they believe that the rupee is fairly valued. Amid the free-float of the exchange rate, inflows from illegal markets diverted towards formal channels.

Moreover, the International Monetary Fund (IMF) team was on a visit to Pakistan and market participants expected the resumption of bailout package. The programme remains stalled as the ninth review of Pakistan’s economy remained incomplete. Although the IMF team left without the signing of a staff level agreement, Finance Minister Ishaq Dar notified the receipt of Memorandum of Economic and Financial Policies (MEFP).

Globally, the US dollar hovered near a five-week high against major peers on Monday on rising bets for prolonged Federal Reserve policy tightening ahead of a crucial consumer price report the following day.

The dollar index – which measures the greenback against six counterparts including the yen, euro and sterling – added 0.068% to 103.65, keeping close to last Tuesday’s high of 103.96, the strongest level since January 6.

Oil prices, a key indicator of currency parity, slumped by about 1% on Monday as investors focused on short-term demand concerns ahead of key US inflation data. Brent crude futures fell $1.14, or 1.3%, to $85.25 a barrel by 1005 GMT after a 2.2% gain on Friday.

Inter-bank market rates for dollar on Monday

BID Rs 269.40

OFFER Rs 271.40

Open-market movement

In the open market, the PKR remained unchanged for buying and selling against USD, closing at 270 and 273, respectively.

Against Euro, the PKR remained unchanged for buying and selling, closing at 285 and 288 respectively.

Against UAE Dirham, the PKR remained unchanged for buying and selling, closing at 74.30 and 75, respectively.

Against Saudi Riyal, the PKR remained unchanged for buying and selling, closing at 71.30 and 72, respectively.

Open-market rates for dollar on Monday

BID Rs 270

OFFER Rs 273