5th successive decline: rupee settles at 287.15 against US dollar

The Pakistani rupee sustained losses against the US dollar for the fifth successive session, depreciating 0.21% in the inter-bank market on Tuesday.

At close, the currency settled at 287.15, a loss of Re0.59 as per the State Bank of Pakistan (SBP).

The decline comes after the rupee registered losses against the US dollar for the fourth consecutive session to settle at 286.56 on Monday.

In a key development, the tax collection target of the Federal Board of Revenue (FBR) would be fixed within the range of Rs 9 trillion to Rs 9.2 trillion for 2023-24.

Sources told Business Recorder that the tax projections for 2023-24 would be finalised keeping in view the massive shortfall in revenue collection of the FBR during 2022-23. The rates of certain withholding taxes and sales tax/excise duty would be further raised in the coming budget (2023-24).

Internationally, the US dollar touched a six-month high against the yen on Tuesday as expectations grew that US rates will remain higher for longer and as the debt ceiling impasse kept risk sentiment fragile.

Among a slew of Federal Reserve heavyweights who spoke on Monday, some hinted that the central bank still has more to go in tightening monetary policy.

The dollar index edged up overnight after St. Louis Fed President James Bullard said the Federal Reserve may still need to raise its benchmark interest rate by another half-point this year.

Oil prices, a key indicator of currency parity, slipped on Tuesday as investor concern over the risk of a US debt default dampened risk appetite, although a tighter market due to a seasonal rise in gasoline demand and supply cuts from OPEC+ producers lent support.

Inter-bank market rates for dollar on Tuesday

BID Rs 287.15

OFFER Rs 287.45

Open-market movement

In the open market, the PKR lost 3 rupees for both buying and selling against USD, closing at 305.00 and 308.00, respectively.

Against Euro, the PKR lost 2 rupees for both buying and selling, closing at 329 and 332 respectively.

Against UAE Dirham, the PKR lost 10 paisa for both buying and selling, closing at 83.80 and 84.60, respectively.

Against Saudi Riyal, the PKR lost 80 paisa for buying and 75 paisa for selling, closing at 81.50 and 82.25, respectively.

Open-market rates for dollar on Tuesday

BID Rs 305.00

OFFER Rs 308.00