Rupee sees marginal gain against US dollar

The rupee saw marginal improvement against the US dollar, appreciating 2 paisa in the inter-bank market on Thursday.

At close, the local unit settled at 278.77, up by 0.007% compared to Wednesday’s close of 278.79 against the greenback, as per the State Bank of Pakistan (SBP).

Pakistan’s Finance Ministry on Wednesday said that it was beginning talks with the International Monetary Fund (IMF) on the final review of the $3-billion Stand-By Arrangement.

“This would be a final review of SBA, and staff-level agreement is expected after this appraisal,” it said in the statement.

“Once staff level agreement is reached, the final tranche of $1.1 billion will be disbursed, following the approval of Executive Board of IMF.”

The development on the IMF’s SBA front has lent support to the currency market that has seen the rupee remain largely stable over the course of the last few months.

Internationally, the currency market was sedate on Thursday, with the US dollar consolidating against major peers as market players awaited more data out of the world’s largest economy for clues on the direction of Federal Reserve policy.

Tuesday’s hotter-than-expected US consumer price index (CPI) has re-ignited concern that inflation could remain sticky, leaving traders to reassess if the Fed will start cutting interest rates at its June meeting as previously expected.

Inter-bank market rates for dollar on Thursday

BID                            Rs 278.77

OFFER                      Rs 278.97

Open-market movement

In the open market, the PKR lost 4.00 paisa for both buying and selling against USD, closing at 278.61 and 281.26, respectively.

Against Euro, the PKR lost 30.00 paisa for buying and 25.00 paisa for selling, closing at 303.25 and 306.20, respectively.

Against UAE Dirham, the PKR lost 2.00 paisa for buying and 1.00 paisa for selling, closing at 75.72 and 76.44, respectively.

Against Saudi Riyal, the PKR lost 2.00 paisa for buying and 1.00 paisa for selling, closing at 73.96 and 74.66, respectively.

Open-market rates for dollar on Thursday

BID                            Rs 278.61

OFFER                      Rs 281.26