New low: rupee hits 302 against US dollar

The Pakistani rupee hit a new record low against the US dollar, as it settled at 302 in the inter-bank market on Monday.

At close, the rupee was down Re1 or 0.33%, as per the State Bank of Pakistan (SBP).

During the previous week, the rupee closed negative across all five sessions to end at a then historic low of 301 against the US dollar.

The currency fell 1.7% against the greenback, but the gap with rates in the open market continued to stay over the prescribed limit by the International Monetary Fund (IMF), raising concerns over further fall in the inter-bank market.

Pakistan’s rising imports as restrictions ease, and falling foreign exchange reserves with no inflows in sight are keeping pressure on the rupee.

In a related development, the SBP said it cannot impose a ban on import of any item as it falls under the domain of Ministry of Commerce (MOC).

Globally, the US dollar eased from a 12-week peak on Monday as traders weighed the US monetary path after the Fed Chair Jerome Powell left open the possibility of further interest rate increases, while the yen hovered close to its lowest in over nine months.

In an eagerly awaited speech at the annual Jackson Hole Economic Policy Symposium, Federal Reserve Chair Powell promised to move with care at upcoming meetings as he noted both progress made on easing price pressures as well as risks from the surprising strength of the US economy.

Oil prices, a key indicator of currency parity, ticked higher on Monday after China took steps to support its flagging economy, though investors remained worried about the pace of growth as well as further US interest rate hikes that could dampen fuel demand.

Inter-bank market rates for dollar on Monday

BID                            Rs 301.80

OFFER                      Rs 302.00

Open-market movement

In the open market, the PKR lost 1.00 rupee for both buying and selling against USD, closing at 312.00 and 315.00, respectively.

Against Euro, the PKR lost 4.00 rupees for both buying and selling, closing at 340.00 and 343.00, respectively.

Against UAE Dirham, the PKR lost 50 paisa for both buying and selling, closing at 86.70 and 87.50, respectively.

Against Saudi Riyal, the PKR lost 80 paisa for both buying and selling, closing at 84.00 and 84.80, respectively.

Open-market rates for dollar on Monday

BID                            Rs 312.00

OFFER                      Rs 315.00