Rupee struggles against US dollar, settles at 287.09

The Pakistani rupee witnessed a significant decline against the US dollar in the inter-bank market on Monday.

As per the State Bank of Pakistan (SBP), the local currency closed at 287.09, down 2.44 or 0.85%.

During the previous week, the rupee had depreciated 0.3% to close at 284.65.

The currency fell in four of the five sessions with the only gain being on Thursday, the day when a finance ministry official said the International Monetary Fund (IMF) had indicated that it has gotten a financing assurance from Saudi Arabia.

Rupee falls slightly against US dollar

On Saturday, Finance Minister Ishaq Dar said the staff-level agreement between Pakistan and the IMF was taking time solely because of delay in confirmation of funding from a friendly country.

The financing confirmation would bridge Pakistan’s external account gap and meet the last condition of the IMF.

Until then the currency is likely to remain under pressure.

Meanwhile, Coordinator to the Prime Minister on Economy and Energy Bilal Azhar Kayani on Sunday said that the government successfully averted the default position and expressed optimism for increase in foreign exchange reserves with reaching a staff level deal with the IMF.

Internationally, the US dollar started the week on the front foot after US jobs data pointed to a tight labour market, firming up expectations that the Federal Reserve will again raise interest rates at its meeting next month.

In the currency market, the dollar index, which measures the US currency against six major peers, rose 0.225% to 102.25, lifting away from the two-month low of 101.40 the index touched last week.

Oil prices, a key indicator of currency parity, steadied on Monday, after rising for three straight weeks, as looming supply cuts from Saudi Arabia and other OPEC+ producers balanced concern about weakening global growth that may dampen fuel demand.

Inter-bank market rates for dollar on Monday

BID Rs 287.10

OFFER Rs 289.10

Open-market movement

In the open market, the PKR lost 1.50 rupee for both buying and selling against USD, closing at 290 and 293, respectively.

Against Euro, the PKR gained 1 rupee for both buying and selling, closing at 310 and 314 respectively.

Against UAE Dirham, the PKR remained unchanged for both buying and selling, closing at 78.75 and 79.75, respectively.

Against Saudi Riyal, the PKR lost 50 paisa for both buying and selling, closing at 76.80 and 77.50, respectively.

Open-market rates for dollar on Monday

BID Rs 290

OFFER Rs 293