Inter-bank: rupee continues to weaken, falls for 12th successive session

The Pakistani rupee sustained losses against the US dollar for the 12th successive session as it depreciated 0.38% in the inter-bank market on Tuesday.

As per the State Bank of Pakistan (SBP), the rupee settled at 286.39, a decrease of Rs1.10.

On Monday, the rupee had depreciated 0.34% to settle at 285.29 against the US dollar.

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The currency is under pressure again owing to pressures of payments which are making the currency depreciate slowly, said experts.

The fall comes after a lengthy appreciation run saw the rupee go as strong as 276-277 to the US dollar last month.

Globally, the US dollar was steady on Tuesday, holding overnight gains as investors took a breather from a risk rally, while the Australian currency drifted lower ahead of a central bank interest rates decision later in the day.

All eyes in Asian hours will be on the Reserve Bank of Australia, which is widely expected to raise rates by 25 basis points, snapping four months of on-hold policy decisions.

Markets on the other hand less sure, pricing in a 63% chance of a hike.

Fed Chairman Jerome Powell is due to speak on Wednesday and Thursday, where the focal point will be on whether he maintains more dovish tone struck after the Fed’s policy meeting last week.

Against a basket of currencies, the dollar index rose 0.057% to 105.32, having climbed 0.2% on Monday, but remained not far off a nearly two-month low of 104.84 touched on Monday.

Oil prices, a key indicator of currency parity, hit fresh 2-1/2-month lows on Tuesday as mixed economic data from China offset the impact of Saudi Arabia and Russia extending output cuts.

Brent crude futures were down $1.65, or 1.94%, to $83.53 a barrel as of 0920 GMT while US West Texas Intermediate crude was at $79.21 a barrel, down $1.61, or 1.99%.

Inter-bank market rates for dollar on Tuesday

BID                            Rs 286.40

OFFER                      Rs 286.60

Open-market movement

In the open market, the PKR lost 50 paisa for both buying and selling against USD, closing at 284.50 and 287.50, respectively.

Against Euro, the PKR lost 1.00 rupee for both buying and selling, closing at 304.00 and 307.00, respectively.

Against UAE Dirham, the PKR gained 50 paisa for both buying selling, closing at 80.00 and 80.80, respectively.

Against Saudi Riyal, the PKR gained 10 paisa for both buying and selling, closing at 76.20 and 76.90, respectively.

Open-market rates for dollar on Tuesday

BID                            Rs 284.50

OFFER                      Rs 287.50