Inter-bank: rupee registers 10th successive gain against US dollar

The Pakistani rupee maintained its upward trajectory against the US dollar for the 10th consecutive session as it appreciated 0.06% in the inter-bank market on Tuesday.

As per the State Bank of Pakistan (SBP), the rupee settled at 282.37 after an increase of Re0.16.

During the previous week, the rupee appreciated 0.25% or Re0.73 against the US dollar in the inter-bank market to settle at 282.53.

It was the sixth consecutive week that the rupee advanced against the dollar, a momentum aided 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).

Since the announcement of the SLA on November 15, the local unit has gained Rs5.61 or 1.94% against the greenback.

Internationally, the US dollar was trying to find a floor on Tuesday in holiday-thinned trade, pressured by signs that inflation in the world’s largest economy is cooling which will likely give the Federal Reserve room to ease interest rates next year.

Against the greenback, the euro slipped 0.06% to $1.1019 but was not too far from a more than four-month top of $1.1040 hit last week.

The dollar index languished near a five-month low of 101.42 hit last week, and was last at 101.65.

Data released on Friday showed US prices fell in November for the first in more than 3-1/2 years, pushing the annual increase in inflation further below 3% and boosting market expectations of an interest rate cut from the Fed next March.

Oil prices, a key indicator of currency parity, steadied on Tuesday, finding support from geopolitical tensions in the Middle East and investor optimism that the US Federal Reserve would soon start cutting interest rates, boosting global economic growth and fuel demand.

While hopes of rate cuts and conflict in the Red Sea have led to a rebound in crude prices, Maersk’s announcement of a restart of shipping routes through the waterway has alleviated supply concerns to a certain extent, said CMC Market analyst Leon Li.

Brent crude futures slipped 7 cents, or 0.1%, to $79.00 a barrel by 1030 GMT while US West Texas Intermediate crude fell 28 cents, or 0.4%, to $73.28.

Inter-bank market rates for dollar on Monday

BID                            Rs 282.35

OFFER                      Rs 282.55

Open-market movement

In the open market, the PKR lost 30 paisa for buying and gained 24 paisa for selling against USD, closing at 281.30 and 283.76, respectively.

Against Euro, the PKR lost 1.19 rupee for buying and 1.00 rupee for selling, closing at 308.19 and 311.00, respectively.

Against UAE Dirham, the PKR lost 19.00 paisa for buying and 22.00 paisa for selling, closing at 76.69 and 77.42, respectively.

Against Saudi Riyal, the PKR gained 2.00 paisa for buying and 16.00 paisa for selling, closing at 74.78 and 75.34, respectively.

Open-market rates for dollar on Monday

BID                            Rs 281.30

OFFER                      Rs 283.76