Rupee falls against US dollar in inter-bank, but gains in open market

The Pakistani rupee maintained its downward trajectory against the US dollar for the third consecutive session in the inter-bank market, depreciating 0.13% on Tuesday.

At close, the currency settled at 286.56, a decline of Re0.37, as per the State Bank of Pakistan (SBP).

In the open-market, however, the rupee clawed back some gains as multiple currency dealers Business Recorder reached out to quoted rates in the range of 300-303 on Tuesday evening.

The dealers, however, informed that the US dollars remain in short supply.

On Monday, the rupee had registered losses for the second straight session to settle at 286.19, or 0.18% down against the US dollar in the inter-bank.

In a key development, the government of Pakistan shared some of the details of the fiscal year 2023-24 budget with the International Monetary Fund (IMF). This was confirmed by Esther Perez Ruiz, Resident Representative of IMF in Pakistan, while responding to Business Recorder questions.

She stated that IMF staff looks forward to furthering the discussions to identify spending and revenue measures that can strengthen debt sustainability prospects while increasing social spending.

Separately, Prime Minister Shehbaz Sharif, in an interview with Anadolu News Agency, said on Monday he was “very hopeful” a deal will be reached with the IMF this month.

“We are still very hopeful that the IMF program will materialise. Our ninth review by the IMF will match all terms and conditions and, hopefully, we’ll have some good news this month.”

Internationally, the US dollar languished well below last week’s 2-1/2-month highs on Tuesday after unexpectedly soft US services data firmed up expectations for a rate pause at the Federal Reserve’s meeting next week but clouded the policy outlook for the months ahead.

The US dollar index - which measures the currency against six major peers - was flat at 104.00, after a shaky few days that saw it rally to a 2 1/2-month peak at 104.70 on the final day of May, only to get knocked back by suggestions by Fed officials that they would skip a rate hike in June.

Oil prices, a key indicator of currency parity, tumbled more than $1 a barrel on Tuesday, after a strong rally in the previous session as worries about the global economic growth outweighed Saudi Arabia’s pledge to deepen output cuts.

Inter-bank market rates for dollar on Tuesday

BID Rs 286.50

OFFER Rs 286.60

Open-market movement

In the open market, the PKR gained 5 rupees for both buying and selling against USD, closing at 300.00 and 303.00, respectively.

Against Euro, the PKR gained 1.50 rupee for buying and 2 rupees for selling, closing at 320.00 and 323.00 respectively.

Against UAE Dirham, the PKR gained 1.20 rupee for both buying and selling, closing at 82.00 and 82.80, respectively.

Against Saudi Riyal, the PKR gained 1.70 rupee for both buying and selling, closing at 79.00 and 79.80, respectively.

Open-market rates for dollar on Tuesday

BID Rs 300.00

OFFER Rs 303.00