Rupee fails to sustain gains, settles at 281.61 against US dollar

The Pakistani rupee was back under pressure against the US dollar, depreciating 0.3% in the inter-bank market on Monday, reversing its marginal gain made on Friday.

As per the State Bank of Pakistan (SBP), the rupee settled at 281.61, a decline of Re0.84.

During the previous week, the rupee had depreciated 0.82% against the US dollar in the inter-bank market even though on Friday, after back-to-back losses, the currency had found some respite against the US dollar, appreciating 0.54% in the inter-bank market, to settle at 280.77.

Inflows from China landing in the SBP’s account lent some support to critical levels of foreign exchange.

However, concerns over an incessant delay in the International Monetary Fund (IMF) programme continued to rattle sentiment.

Former Federal Finance Minister Miftah Ismail on Sunday said that in order to avoid IMF programmes, Pakistan must ensure at least 15% tax to Gross Domestic Product (GDP), and 15% exports to GDP.

Internationally, the US dollar fell sharply on Monday as authorities stepped in to cap the fallout from the sudden collapse of Silicon Valley Bank (SIVB), with investors hoping the Federal Reserve will take a less aggressive monetary path.

The US government announced several measures early on Monday, and said all SVB customers will have access to their deposits starting on Monday. Officials also said depositors of New York’s Signature Bank, which was closed Sunday by the New York state financial regulator, would also be made whole at no loss to the taxpayer.

The dollar index, which measures the US currency against six rivals, fell 0.528% at 103.69, its lowest in nearly a month after Goldman Sachs said it no longer expects the Fed to deliver a rate hike at its March 22 meeting.

Oil prices, a key indicator of currency parity, ticked up in Monday Asian late-morning trade, reversing a weak start as a recovery in Chinese demand and a weaker dollar provided support to a market rattled by the prospect possible further US interest rate increases.

Inter-bank market rates for dollar on Monday

BID Rs 281.50

OFFER Rs 284.00

Open-market movement

In the open market, the PKR lost 1 rupee for buying and 2 rupees for selling against USD, closing at 282 and 285, respectively.

Against Euro, the PKR lost 3 rupees for both buying and selling, closing at 297.00 and 300.00 respectively.

Against UAE Dirham, the PKR lost 30 paisa for both buying and selling, closing at 76.80 and 77.50, respectively.

Against Saudi Riyal, the PKR lost 30 paisa for buying and 40 paisa for selling, closing at 74.80 and 75.50, respectively.

Open-market rates for dollar on Monday

BID Rs 282.00

OFFER Rs 285.00