Rupee plunges to new all-time low against US dollar

The Pakistani rupee took another hammering on Tuesday and plunged to a fresh all-time low of 288.43 against the US dollar in the inter-bank market.

According to the State Bank of Pakistan (SBP), the local currency depreciated Rs1.34 or 0.46%.

Speaking to Business Recorder, Ismail Iqbal Securities Head of Research Fahad Rauf said lack of developments on resumption of the International Monetary Fund (IMF) programme remains the prime reason behind the fall of the rupee.

“This factor is keeping the local currency under pressure,” he said.

Arif Habib Limited Head of Research Tahir Abbas told Business Recorder that a few letters of credit were opened therefore there was pressure on rupee.

The fall comes a day after the rupee had registered a significant decline against the US dollar, settling at 287.09 in the inter-bank market after a loss of Rs2.44 or 0.85%.

In a key development, Federal Minister for Finance and Revenue Ishaq Dar on Monday reiterated that a staff-level agreement with the IMF will be signed soon.

The government has “employed all-out efforts to complete the IMF programme and the staff-level agreement would be signed soon,” Dar assured the lower house of the parliament.

Globally, the US dollar paused for breath on Tuesday following its best rally this month against major peers as a resilient US labour market bolstered the case for a Federal Reserve rate hike next month.

Leading cryptocurrency bitcoin briefly touched $30,000 for the first time since June.

The US dollar index - which measures the greenback against six major counterparts, including the yen - slipped 0.06% in early Asian trading, following a 0.39% advance at the start of the week.

Oil prices, a key indicator of currency parity, edged higher on Tuesday as market participants weighed supply cuts from OPEC+ that would tighten the global market against concerns about further interest rate hikes potentially hurting demand.

Investors were awaiting a slate of reports on inflation, oil demand and supply due this week that could give the market direction.

Inter-bank market rates for dollar on Tuesday

BID Rs 288.40

OFFER Rs 290.40

Open-market movement

In the open market, the PKR lost 2 rupees for both buying and selling against USD, closing at 292 and 295, respectively.

Against Euro, the PKR lost 50 paisa for both buying and selling, closing at 310.50 and 314.50 respectively.

Against UAE Dirham, the PKR remained unchanged for both buying and selling, closing at 78.75 and 79.50, respectively.

Against Saudi Riyal, the PKR lost 20 paisa for both buying and selling, closing at 77.00 and 77.70, respectively.

Open-market rates for dollar on Tuesday

BID Rs 292

OFFER Rs 295