Rupee weakens, settles at 283.85 against US dollar
- Currency depreciates 0.09% in inter-bank market
The Pakistani rupee weakened against the US dollar, settling with a marginal depreciation of 0.09% during the trading session on Monday.
According to the State Bank of Pakistan (SBP), the local currency closed at 283.85, a decrease of Re0.26.
During the previous week, the rupee had inched up 0.08% against the US dollar. The currency struggled to find direction amid a current account surplus and a pending bailout programme with the International Monetary Fund (IMF).
On Friday, the rupee had closed at 283.59 in the inter-bank market.
In a key development, Pakistan faces $3.7 billion of debt payments starting this month, Fitch Ratings said, according to Bloomberg.
“About $700 million of maturities are due in May and another $3 billion in June,” Krisjanis Krustins, a Hong Kong-based director at Fitch, was quoted by Bloomberg as saying.
Fitch expects $2.4 billion of deposits and loans from China will be rolled over, the report added.
Globally, the US dollar was catching its breath on Monday after dropping last week when the Federal Reserve hinted at an end to the US rate increase cycle, with traders turning their focus to US inflation and bank lending data for the week ahead.
US interest rate futures are pricing about a one-third chance of a rate cut as soon as July, according to the CME FedWatch tool - even though stronger-than-forecast US jobs data released on Friday suggests that might be premature.
The US dollar index dropped for a second week in a row last week, losing about 0.4%.
Oil prices, a key indicator of currency parity, rose on Monday as easing U.S. recession fears shifted market focus to tightening supplies, offering support after crude prices registered three straight weekly declines for the first time since November.
Inter-bank market rates for dollar on Monday
BID Rs 283.90
OFFER Rs 286.00
Open-market movement
In the open market, the PKR lost 1 rupee for both buying and selling against USD, closing at 285 and 288, respectively.
Against Euro, the PKR remained unchanged for both buying and selling, closing at 313 and 316 respectively.
Against UAE Dirham, the PKR lost 20 paisa for buying and 10 paisa for selling, closing at 77.70 and 78.30, respectively.
Against Saudi Riyal, the PKR lost 40 paisa for buying and 30 paisa for selling, closing at 75.90 and 76.50, respectively.
Open-market rates for dollar on Monday
BID Rs 285
OFFER Rs 288
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