Rupee registers back-to-back losses, settles at 287.91 against US dollar

The Pakistani rupee weakened further against the US dollar with a depreciation of 0.17% in the inter-bank market on Tuesday.

At close, the currency settled at 287.91, a decrease of Re0.48, as per the State Bank of Pakistan (SBP).

The rupee opened the week on a negative note against the US dollar and depreciated 0.16% to settle at 287.43 on Monday.

In a key development, the Economic Coordination Committee (ECC), after discussion, approved the proposal of changes in the contours of six incentives schemes of the State Bank of Pakistan (SBP) in order to improve the inflow of remittances, and to get optimal remittance inflow through formal channels.

Home remittances play a significant role in supporting the country’s external account, stimulating Pakistan’s economic activity as well as supplementing disposable incomes of remittance-dependent households.

The US dollar turned decisively higher on Tuesday as traders struggled to get a grip on the diverging growth outlooks between the world’s two largest economies, while at the same time grew immune to another disappointing set of Chinese trade figures.

China’s exports fell an annual 14.5% in July while imports contracted 12.4%, data on Tuesday showed, marking the biggest decline in outbound shipments from the world’s second largest economy since February 2020.

Elsewhere, the US dollar rose broadly and eked out a 0.6% gain against its Japanese counterpart to last trade at 143.31 yen.

Oil prices, a key indicator of currency parity, fell by 1% on Tuesday after data showed China’s imports and exports fell much more than expected in July in yet another sign of a sluggish post-COVID rebound for the world’s largest oil importer.

Inter-bank market rates for dollar on Tuesday

BID Rs 287.90

OFFER Rs 288.10

Open-market movement

In the open market, the PKR gained 25 paisa for both buying and selling against USD, closing at 291.75 and 294.75, respectively.

Against Euro, the PKR remained unchanged for both buying and selling, closing at 320.00 and 323.00, respectively.

Against UAE Dirham, the PKR gained 20 paisa for both buying and selling, closing at 81.50 and 82.30, respectively.

Against Saudi Riyal, the PKR remained unchanged for both buying and selling, closing at 77.80 and 78.50, respectively.

Open-market rates for dollar on Tuesday

BID Rs 291.75

OFFER Rs 294.75