Back-to-back falls: rupee settles at 287.63 against US dollar

The Pakistani rupee recorded back-to-back losses against the US dollar with a depreciation of 0.24% in the inter-bank market on Monday.

At close, the currency settled at 287.63, a decrease of Re0.70, as per the State Bank of Pakistan (SBP).

During the previous week, the rupee depreciated 0.43% in the inter-bank market, maintaining its rather stable run to settle at 286.93 against the dollar.

However, in the open-market, the rupee’s fall was higher as the market found a new “equilibrium” after the SBP’s permission to allow authorised dealers to use the inter-bank for payments of cross-border card transactions sent the currency for a volatile ride.

In a key development, Prime Minister Shehbaz Sharif on Sunday expressed his optimism regarding Pakistan’s chances of striking a deal with the International Monetary Fund (IMF) this month, saying that the government has accepted all the conditions of the global lender and implemented them.

PM Shehbaz regretted that the previous government of Pakistan Tehreek-e-Insaf (PTI) reneged on its agreement with the IMF which led to a “very serious economic situation”.

The resumption of the bailout programme, which has remained stalled since November, is crucial for the cash-strapped economy facing a balance of payment crisis.

The current programme is scheduled to expire on June 30.

Internationally, the US dollar held its ground on Monday but was still near multi-week lows against some of its major peers as traders were on guard ahead of central bank meetings this week, including the Federal Reserve’s where it will announce its rates decision.

The US dollar index clocked a loss of nearly 0.5% last week, its worst weekly drop since mid-April, and was last marginally higher at 103.58.

Oil prices, a key indicator of currency parity, fell $2 on Monday ahead of a US Federal Reserve meeting as investors tried to gauge the central bank’s appetite for further rate hikes, while concerns about China’s fuel demand growth and rising Russian crude supply weighed on the market.

Inter-bank market rates for dollar on Monday

BID Rs 287.50

OFFER Rs 287.65

Open-market movement

In the open market, the PKR remained unchanged for both buying and selling against USD, closing at 302.00 and 305.00, respectively.

Against Euro, the PKR lost 1 rupee for both buying and selling, closing at 320.00 and 323.00 respectively.

Against UAE Dirham, the PKR gained 20 paisa for buying and 30 paisa for selling, closing at 82.80 and 83.50, respectively.

Against Saudi Riyal, the PKR gained 50 paisa for buying and 60 paisa for selling, closing at 79.50 and 80.20, respectively.

Open-market rates for dollar on Monday

BID Rs 302.00

OFFER Rs 305.00