Rupee regains winning momentum, settles at 283.9 against US dollar

The Pakistani rupee regained some ground against the US dollar, appreciating 0.29% in the inter-bank market on Tuesday.

According to the State Bank of Pakistan (SBP), the local currency settled at 283.9, an increase of Re0.81.

The development comes after the rupee ended its three-session winning streak on Monday, settling at 284.71 in the inter-bank market, and as the market keenly awaits resumption of the International Monetary Fund (IMF) Extended Fund Facility (EFF), which has remained stalled since last year.

On Monday, Prime Minister Shehbaz Sharif in his address to the National Assembly said Saudi Arabia has provided another $2 billion to Pakistan. “The UAE has also promised to give us $1 billion,” he said.

The IMF has said it is looking forward to obtaining necessary financing assurances as soon as possible to pave the way for the successful completion of the 9th review. Pakistan has already secured $3 billion in fresh inflow from Saudi Arabia and the UAE.

Globally, the US dollar eased on Tuesday after rallying overnight as strong US economic data reinforced expectations that the Federal reserve will hike interest rates again in May, while investors awaited data from China that will highlight the extent of the recovery of the world’s second-biggest economy.

The dollar index, which measures the currency against six major rivals, fell 0.039% to 102.05, after rising 0.5% overnight.

Data on Monday showed confidence among US single-family homebuilders improved for a fourth straight month in April, while manufacturing activity in New York state increased for the first time in five months.

Oil prices, a key indicator of currency parity, firmed slightly early on Tuesday, after falling 2% in the previous session, as stronger economic data from China, the world’s largest crude importer, underpinned demand outlook.

Inter-bank market rates for dollar on Tuesday

BID Rs 283.90

OFFER Rs 286.00

Open-market movement

In the open market, the PKR gained 1 rupee for both buying and selling against USD, closing at 285 and 288, respectively.

Against Euro, the PKR gained 1 rupee for both buying and selling, closing at 309 and 312 respectively.

Against UAE Dirham, the PKR remained unchanged for both buying and selling, closing at 77.30 and 78.00, respectively.

Against Saudi Riyal, the PKR gained 20 paisa for both buying and selling, closing at 75.30 and 76.00, respectively.

Open-market rates for dollar on Tuesday

BID Rs 285

OFFER Rs 288