Inter-bank: rupee declines for third successive session against US dollar

The Pakistani rupee continued to fall for the third successive session against the US dollar as it depreciated 0.09% in the inter-bank market on Monday.

As per the State Bank of Pakistan (SBP), the rupee settled at 285.64, a decrease of Re0.27.

During the previous week, the rupee extended its winning streak as it appreciated 0.39% or Rs1.13 to settle at 285.37 against the US dollar in the inter-bank market.

The local currency gained in the first three days of the week. However, it edged lower in the remaining two sessions. It was the second consecutive week that the rupee appreciated against the dollar.

Earlier, 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 the first review of the $3 billion Stand-by Arrangement (SBA).

In a key development, Caretaker Federal Minister for Finance Dr Shamshad Akhtar said political and economic instability over a period of time had greatly disrupted Pakistan’s economic growth, which should be backed by structural reforms.

Internationally, the US dollar kicked off the last week of November on the back foot while sterling held near an over two-month high on an easing economic gloom in the UK, as traders eyed fresh economic cues in the week ahead to determine the future path of policy rates.

A postponed OPEC+ meeting, data from the Federal Reserve’s favoured measure of inflation alongside inflation readings in the eurozone and Australia fill this week’s calendar, which will also see a rate decision from the Reserve Bank of New Zealand (RBNZ) and Chinese PMI data.

The dollar kicked off the last week of November on the back foot while sterling held near an over two-month high on an easing economic gloom in the UK, as traders eyed fresh economic cues in the week ahead to determine the future path of policy rates.

A postponed OPEC+ meeting, data from the Federal Reserve’s favoured measure of inflation alongside inflation readings in the eurozone and Australia fill this week’s calendar, which will also see a rate decision from the Reserve Bank of New Zealand (RBNZ) and Chinese PMI data.

Oil prices, a key indicator of currency parity, slipped on Monday, with Brent falling toward $80 a barrel, as investors waited for an OPEC+ meeting later this week for an agreement expected to curb supplies into 2024.

Brent crude futures fell 42 cents, or 0.5%, to $80.16 a barrel by 0901 GMT, while US West Texas Intermediate crude futures were at $75.05 a barrel, down 49 cents, or 0.7%.

Inter-bank market rates for dollar on Monday

BID                            Rs 285.65

OFFER                      Rs 285.85

Open-market movement

In the open market, the PKR lost 50 paisa for both buying and selling against USD, closing at 284.00 and 287.00, respectively.

Against Euro, the PKR lost 1.00 rupee for both buying and selling, closing at 310.00 and 313.00, respectively.

Against UAE Dirham, the PKR lost 30 paisa for both buying and selling, closing at 77.80 and 78.50, respectively.

Against Saudi Riyal, the PKR lost 30 paisa for buying and 40 paisa for selling, closing at 76.00 and 76.70, respectively.

Open-market rates for dollar on Monday

BID                            Rs 284.00

OFFER                      Rs 287.00