Inter-bank: rupee ends 28-session winning streak, settles at 277.03 against US dollar

The Pakistani rupee finally ended its 28-session winning streak against the US dollar, as it depreciated 0.07% in the inter-bank market on Tuesday.

As per the State Bank of Pakistan (SBP), the rupee settled at 277.03 after a decrease of Re0.20 in the inter-bank market.

On Monday, the rupee had appreciated 0.29% to settle at 276.83.

Since its record low of 307.1 in the inter-bank market on September 5, the local currency has eked out one of the longest appreciation runs.

The unprecedented increase came largely on the back of a crackdown against smuggling and controls on the Exchange Companies (ECs) sector.

With strict actions, the central bank has become more vigilant on exchange companies. During the last one month, authorisation of nine exchange companies has been suspended for serious violations.

Internationally, the US dollar started on Tuesday on the back foot as investors took stock of developments in the Middle East and braced for a slew of speeches by central bank officials this week headlined by Fed Chair Powell to gauge the monetary policy outlook.

The dollar index, which measures the US currency against six rivals, eased 0.038% to 106.20, after dropping 0.36% on Monday. Investor attention will firmly be on Fed Chairman Jerome Powell, who is due to speak on Thursday, during a busy week of speeches by regional bank heads.

Fed officials will enter into a blackout period on Oct. 21 before the Fed’s Oct. 31–Nov. 1 meeting.

Oil prices, a key indicator of currency parity, steadied on Tuesday after sliding more than $1 on Monday amid hopes the US would ease sanctions on producer Venezuela and as Washington stepped up efforts to prevent an escalation of the conflict between Israel and Hamas.

Inter-bank market rates for dollar on Tuesday

BID                            Rs 277.00

OFFER                      Rs 277.20

Open-market movement

In the open market, the PKR remained unchanged for both buying and selling against USD, closing at 274.00 and 277.00, respectively.

Against Euro, the PKR gained 1.00 rupee for both buying and selling, closing at 291.00 and 294.00, respectively.

Against UAE Dirham, the PKR remained unchanged for both buying and selling, closing at 76.00 and 76.75, respectively.

Against Saudi Riyal, the PKR remained unchanged for both buying and selling, closing at 73.30 and 74.00, respectively.

Open-market rates for dollar on Tuesday

BID                            Rs 274.00

OFFER                      Rs 277.00