Rupee remains largely stable against US dollar

The Pakistani rupee remained largely stable against the US dollar in the inter-bank market on Monday.

At close, the local unit settled at 277.94, up by Re0.01 against the greenback, as per the State Bank of Pakistan (SBP).

During the previous week, the rupee increased marginally as it gained Re0.19 or 0.07% against the US dollar in the inter-bank market.

The local unit closed the week at 277.95, compared to 278.14 it had closed the week earlier against the greenback.

In a key development, the federal government ordered a significant rise in petrol price by up to Rs9.66 per litre, effective from April 1, 2024, further adding financial burden on general public.

The recent surge in petrol prices is attributed to an increase in premium from $12.15 per barrel to $13.507 per barrel, marking a $1.45 per barrel increment.

The government passed on its full impact to general masses ahead of Eid-ul-Fitr, with the rate of petrol surpassing the high-speed diesel (HSD) price. The petrol price is raised from Rs279.75 to Rs289.41 per litre.

Internationally, the US dollar was broadly steady on Monday as data showing easing US prices bolstered bets that the Federal Reserve could cut interest rates in June, while the yen loitered near 152 per dollar keeping traders on edge on the threat of intervention.

The personal consumption expenditures (PCE) price index rose 0.3% in February, the Commerce Department’s Bureau of Economic Analysis said on Friday, compared with the 0.4% rise that economists polled by Reuters had forecast.

The report also showed consumer spending rising by the most in just over a year last month, underscoring the economy’s resilience.

The dollar index, which measures the US currency against six rivals, eased 0.038% to 104.42 but remained close to the six-week high of 104.73 it touched last week.

Oil prices, a key indicator of currency parity, added to recent gains on Monday amid expectations of tighter supply from OPEC+ cuts and attacks on Russian refineries while upbeat Chinese manufacturing data supported the outlook for improving demand.

Brent crude was 25 cents, or 0.3%, higher at $87.25 a barrel by 0830 GMT after rising 2.4% last week.

US West Texas Intermediate crude was at $83.44 a barrel, up 27 cents, or 0.3%, following a 3.2% gain last week.

Inter-bank market rates for dollar on Monday

BID Rs 277.94

OFFER Rs 278.14

Open-market movement

In the open market, the PKR gained 6.00 paisa for buying and remained unchanged for selling against USD, closing at 277.81 and 280.20, respectively.

Against Euro, the PKR gained 33.00 paisa for buying and 28.00 paisa for selling, closing at 297.73 and 300.50, respectively.

Against UAE Dirham, the PKR gained 2.00 paisa for buying and 3.00 paisa for selling, closing at 75.37 and 76.07, respectively.

Against Saudi Riyal, the PKR gained 2.00 paisa for buying and 4.00 paisa for selling, closing at 73.63 and 74.30, respectively.

Open-market rates for dollar on Monday

BID Rs 277.81

OFFER Rs 280.20