Rupee registers slight gain against US dollar

The Pakistani rupee registered a marginal increase of 0.01% against the US dollar in the inter-bank market on Tuesday.

At close, the local unit settled at 279.31 after a gain of Re0.02 against the greenback, as per the State Bank of Pakistan (SBP).

On Monday, the rupee registered a marginal fall to settle at 279.33 against the US dollar, according to the SBP.

In a key development, the International Monetary Fund (IMF) said that the government’s tariff rationalisation and circular debt management plans do not address the underlying problems of Pakistan’s energy sector.

“Restoring the viability of the energy sector is critical to Pakistan’s economic recovery and fiscal sustainability,” IMF Mission Chief Nathan Porter told Business Recorder via message on Monday.

“In our view, the proposed plan does not address the underlying problems. In particular, the circular debt neutrality of the tariff rationalisation plan is doubtful and it would place a significant additional burden on vulnerable households,” he said.

Globally, the US dollar flirted with the psychological threshold of 150 yen on Tuesday and held broadly steady ahead of a key reading on U.S. inflation due later in the day, while bitcoin hovered around the $50,000 mark for a second day running.

Trading was largely subdued early in Asia with markets in China and Hong Kong still closed for the Lunar New Year holidays and as traders stayed on guard ahead of Tuesday’s release of consumer prices data in the world’s largest economy.

The greenback last bought 149.39 yen, edging higher toward the closely-watched 150 level that analysts said would likely trigger further jawboning from Japanese officials in an attempt to support the currency.

Against a basket of currencies, the dollar inched up 0.02% at 104.16.

Oil prices, a key indicator of currency parity, edged up on Tuesday as uncertainty over fighting in the Middle East kept markets on edge, but gains were capped by concerns that central banks will keep interest rates higher for longer to battle inflation, weighing on energy demand.

Brent futures rose 30 cents to $82.30 a barrel as of 0924 GMT. U.S. West Texas Intermediate (WTI) crude gained 31 cents to $77.23 a barrel.

Oil prices were near flat in Monday’s trade, after gaining 6% last week.

Inter-bank market rates for dollar on Tuesday

BID                            Rs 279.31

OFFER                      Rs 279.51

Open-market movement

In the open market, the PKR gained 4.00 paisa for buying and lost 13.00 paisa for selling against USD, closing at 279.15 and 281.32, respectively.

Against Euro, the PKR gained 20.00 paisa for buying and 23.00 paisa for selling, closing at 299.53 and 302.35, respectively.

Against UAE Dirham, the PKR gained 4.00 paisa for buying and 1.00 paisa for selling, closing at 76.14 and 76.84, respectively.

Against Saudi Riyal, the PKR lost 2.00 paisa for buying and 1.00 paisa for selling, closing at 74.25 and 74.91, respectively.

Open-market rates for dollar on Tuesday

BID                            Rs 279.15

OFFER                      Rs 281.32