Rupee sees decline, settles at 279.8 against US dollar

The Pakistani rupee sustained losses against the US dollar, weakening 0.68% in the inter-bank market on Monday.

At close, the currency settled at 279.8, a decrease of Rs1.9, as per the State Bank of Pakistan (SBP).

During the previous week, the rupee registered a substantial 2.91% gain against the US dollar as finalisation of the Stand-By Arrangement (SBA) with the International Monetary Fund (IMF) gave strength to the local currency.

On Friday, the rupee settled at 277.9 in the inter-bank market, with a similar gain in the open market helping it close between 279 and 282. The narrower gap was a reflection of the stability in both currency markets, and remains a condition of the new SBA as well that will run through the second half of the current fiscal year.

The new programme, seen by many as an upgrade to the Extended Fund Facility that expired unsuccessfully at the ninth review, is subject to approval of the IMF Executive Board. The IMF has also confirmed Pakistan’s agenda is to be taken up on July 12 even though its official website calendar had not been updated to include Pakistan as of Monday morning.

Internationally, the US dollar was on the defensive on Monday as investors scaled back expectations over how much further US interest rates would rise after US jobs data showed the smallest increase in 2-1/2 years.

The US economy added 209,000 jobs last month, data on Friday showed, missing market expectations for the first time in 15 months.

The US dollar index rose 0.06% to 102.36 but remained not far from Friday’s two-week low of 102.22.

Oil prices, a key indicator of currency parity, dipped in Asian trade on Monday as investors tread cautiously ahead of fresh economic data from top consumers the United States and China this week, though expected crude supply cuts from Saudi Arabia and Russia limited losses.

Inter-bank market rates for dollar on Monday

BID Rs 279.70

OFFER Rs 279.90

Open-market movement

In the open market, the PKR lost 1.00 rupee for both buying and selling, against USD, closing at 280.00 and 283.00, respectively.

Against Euro, the PKR remained unchanged for both buying and selling, closing at 303.00 and 306.00 respectively.

Against UAE Dirham, the PKR lost 40 paisa for buying and 50 paisa for selling, closing at 76.70 and 77.50, respectively.

Against Saudi Riyal, the PKR lost 80 paisa for both buying and selling, closing at 73.80 and 74.50, respectively.

Open-market rates for dollar on Monday

BID Rs 280.00

OFFER Rs 283.00