5th consecutive gain: rupee appreciates 0.36% against US dollar

The Pakistani rupee maintained its positive momentum against the US dollar for the fifth successive session, appreciating 0.36% in the inter-bank market on Monday.

As per the State Bank of Pakistan (SBP), the currency closed at 261.88 against the US dollar, an increase of Re0.94. Despite the gains, the currency has still depreciated 21.4% during the ongoing fiscal year against the greenback.

During the previous week, the rupee appreciated 2.45%, reportedly helped by realisation of export proceeds and higher inflow of remittances through legal channels, to settle at 262.82 against the US dollar.

During the week, the SBP also reported a slight increase in foreign exchange reserves, which clocked in at $3.19 billion.

However, the market is keenly awaiting revival of the International Monetary Fund (IMF) programme before which any positive movement in the currency is going to be short-lived.

Globally, the dollar was on the frontfoot on Monday, supported by a strong run of economic data out of the United States that traders bet will keep the Federal Reserve on its monetary policy tightening path for longer than initially expected.

A slew of data out of the world’s largest economy in recent weeks pointing to a still-tight labour market, sticky inflation, robust retail sales growth and higher monthly producer prices, have raised market expectations that the US central bank has more to do in taming inflation, and that interest rates would have to go higher.

The US dollar index rose 0.05% to 104.03, and is up nearly 2% for the month so far, keeping it on track for its first monthly gain since last September.

Oil prices, a key indicator of currency parity, were little changed in early Asian trade on Monday, after settling down $2 a barrel on Friday, as rising supplies in the United States and forecasts of more interest rate hikes cooled optimism over China’s demand recovery.

Inter-bank market rates for dollar on Monday

BID Rs 261.85

OFFER Rs 263.85

Open-market movement

In the open market, the PKR gained 25 paisa for buying and selling against USD, closing at 264.75 and 267.75, respectively.

Against Euro, the PKR remained unchanged for buying and selling, closing at 278.50 and 281.50 respectively.

Against UAE Dirham, the PKR lost 10 paisa for buying and remained unchanged for selling, closing at 72.80 and 73.50, respectively.

Against Saudi Riyal, the PKR lost 20 paisa for buying and selling, closing at 70.00 and 70.70, respectively.

Open-market rates for dollar on Monday

BID Rs 264.75

OFFER Rs 267.75