KARACHI: The Pakistani rupee maintained its upward trajectory against the US dollar for the third consecutive session, as it appreciated 0.19% in the inter-bank market on Monday.
As per the State Bank of Pakistan (SBP), the rupee settled at 285.97, an increase of Re0.53.
During the previous week, the rupee had finally snapped its losing streak as it closed the week 0.18% or Re0.53 higher to settle at 286.50 in the inter-bank market against the US dollar on Friday.
The local currency had rebounded from 4-week losses, helped by the announcement of a staff-level agreement (SLA) between Pakistan and the International Monetary Fund (IMF) on first review of the $3 billion Stand-by Arrangement (SBA).
The staff-level agreement between the IMF and Pakistan is subject to approval of the IMF’s Executive Board. Upon approval, around $700 million will become available bringing total disbursements under the programme to almost $1.9 billion, the IMF said in its statement.
Internationally, the US dollar slid to a two-month low on Monday, extending its downtrend from last week as traders reaffirmed their belief that US rates have peaked and turned their attention to when the Federal Reserve could begin cutting rates.
The dollar index in Asia trade bottomed at 103.64, its weakest level since Sept. 1, extending its nearly 2% decline from last week – the sharpest weekly fall since July.
Markets have priced out the risk of further rate hikes from the Fed following a slew of weaker-than-expected US economic indicators last week, particularly after an inflation reading that came in below estimates.
Oil prices, a key indicator of currency parity, edged higher on Monday, extending gains on the prospect of OPEC+ deepening supply cuts to shore up prices that have fallen for four weeks on demand concerns and Middle East supply disruption owing to the Israel-Hamas conflict.
Brent crude futures rose 34 cents to $80.95 a barrel by 0915 GMT. US West Texas Intermediate crude was up 31 cents at $76.20.
Open-market movement
In the open market, the PKR gained 75 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 309.00 and 312.00, respectively.
Against UAE Dirham, the PKR gained 30 paisa for both buying and selling, closing at 78.00 and 78.70, respectively.
Against Saudi Riyal, the PKR remained unchanged for both buying and selling, closing at 75.80 and 76.50, respectively.
LAHORE
Pak rupee gained against the US dollar and lost against the British pound.
According to the market sources, Pak rupee registered a closing of Rs285.00 and Rs288.50 against the US dollar compared with the previous closing of Rs288.00 and R290.00, respectively.
So far as the British pound is concerned, Pak rupee witnessed a closing of Rs355.00 and Rs358.50 against the last day closing of Rs351.00 and Rs354.50, respectively.
Copyright Business Recorder, 2023
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