Rupee sustains back-to-back losses, settles at 287.54 against US dollar

The Pakistani rupee registered back-to-back losses against the US dollar as it depreciated 0.31% on Tuesday.

At close, the rupee settled at 287.54, a decrease of Re0.90, as per the State Bank of Pakistan (SBP).

On Monday, the Pakistani rupee registered a marginal decline against the US dollar to depreciate 0.07% to settle at 286.64.

In a key development, the SBP decided to extend settlement of card-based cross-border transactions through inter-bank for other five months.

Previously, the SBP on May 31, allowed the banks to purchase the dollar from interbank for settlement of card-based cross-border transactions with International Payment Schemes (IPSs).

Initially, the facility was given for two months and expired on July 31; however, the SBP decided to extend the validity of buying of dollar from inter-bank market for card payments for another five months.

Globally, the US dollar moved higher versus its major peers and Asian currencies.

Federal Reserve survey data released on Monday showed US banks reported tighter credit standards and weaker loan demand from both businesses and consumers during the second quarter.

The Fed’s quarterly Senior Loan Officer Opinion Survey, or SLOOS, also showed that banks expect to further tighten standards over the rest of 2023, adding to further evidence that rising interest rates are having an impact on the economy.

Tight lending standards can amplify the effects of rising interest rates and contribute to a US recession later this year, CBA’s Clifton said.

Against a basket of currencies, the dollar rose 0.059% at 101.93, flirting with a fresh three-week peak.

The index fell 1% in July.

Oil prices, a key indicator of currency parity, edged lower on Tuesday on signs of profit-taking after rallying in July when investors benefited from tightening global supplies and signs of growing demand in the second half of the year.

Inter-bank market rates for dollar on Tuesday

BID Rs 287.50

OFFER Rs 287.70

Open-market movement

In the open market, the PKR remained unchanged for both buying and selling against USD, closing at 288.00 and 291.00, respectively.

Against Euro, the PKR remained unchanged for both buying and selling, closing at 318.00 and 321.00, respectively.

Against UAE Dirham, the PKR lost 80 paisa for buying and 70 paisa for selling, closing at 81.00 and 81.70, respectively.

Against Saudi Riyal, the PKR gained 20 paisa for buying and 30 paisa for selling, closing at 76.50 and 77.20, respectively.

Open-market rates for dollar on Tuesday

BID Rs 288.00

OFFER Rs 291.00