Rupee sustains losses, settles at 285.42 against US dollar

The Pakistani rupee registered losses against the US dollar, depreciating 0.09% in the inter-bank market on Monday.

At close, the currency settled at 285.42, a decline of Re0.27, as per the State Bank of Pakistan (SBP).

However, in the open market, the US dollar was being traded in the range of 309-312 level against the greenback, as the gap widened due to foreign currency shortage.

During the previous week, the rupee appreciated marginally by 0.23% in the inter-bank market against the US, but its gap in the open market rates continued to persist.

The currency settled at 285.15 on Friday, strengthening in three of the five sessions, but its rate in the open market hovered between 307-310.

A persistent delay in the International Monetary Fund (IMF) programme, which is due to end in June, fear of default, and an inability to ensure dollar inflow through legal channels has kept the market under pressure.

In a key development, Finance Minister Ishaq Dar said on Sunday the country will share its upcoming budget details with the IMF in order to unlock stalled funds.

“They have asked us for some more details like the details of (the) budget, we will give that to them,” Dar said in an interview with a private TV channel.

The IMF’s $1.1 billion funding to Pakistan, which is part of the $6.5 billion rescue package agreed in 2019, has been held up since November.

The IMF and Pakistan held two weeks of talks in February in Islamabad to conclude the 9th review, but the lender has not yet released the money, which is critical for the South Asian nation to unlock other bilateral and multilateral financings.

Globally, the US dollar was firm on Monday as economic resilience in the United States raised market expectations for further rate hikes by the Federal Reserve, while news that a debt ceiling deal had been finalized sparked some risk-on sentiment.

Data released on Friday showed that U.S. consumer spending increased more than expected in April and inflation picked up, adding to signs of a still-resilient economy.

Oil prices, a key indicator of currency parity, rose on Monday after U.S. leaders reached a tentative debt ceiling deal, possibly averting a default in the world’s largest economy and oil consumer, although concerns about further interest rate hikes capped gains.

Inter-bank market rates for dollar on Monday

BID Rs 285.40

OFFER Rs 285.50

Open-market movement

In the open market, the PKR lost 1 rupee for both buying and selling against USD, closing at 308.00 and 311.00, respectively.

Against Euro, the PKR remained unchanged for both buying and selling, closing at 331 and 334 respectively.

Against UAE Dirham, the PKR lost 80 paisa for both buying and selling, closing at 85.00 and 85.80, respectively.

Against Saudi Riyal, the PKR lost 50 paisa for both buying and selling, closing at 83.00 and 83.80, respectively.

Open-market rates for dollar on Monday

BID Rs 308.00

OFFER Rs 311.00