The rupee remained largely stable against the US dollar, depreciating 0.01% in the inter-bank market on Tuesday.
At close, the local unit settled at 278.64, down by Re0.01 against the greenback, as per the State Bank of Pakistan (SBP).
On Monday, the rupee registered a marginal gain to settle at 278.63 against the US dollar, according to the SBP.
In a key development, the Monetary Policy Committee (MPC) kept the key policy rate unchanged at 22%, its sixth successive decision to maintain the status quo.
Moreover, talks between the International Monetary Fund (IMF) and Pakistani authorities on the second review have been extended because the agenda was not covered and the remaining items were to be taken up Tuesday.
Globally, the US dollar gained nearly 0.4% against the yen in a knee-jerk reaction following the decision, as markets had largely priced in a shift prior to Tuesday’s outcome.
The greenback’s rebound has come on the back of a recent run of resilient US economic data pointing to still-sticky inflation, causing investors to adjust their expectations of the pace and scale of Federal Reserve rate cuts this year.
That comes ahead of the Fed’s policy decision due on Wednesday, where the focus will be on any clues on how soon the central bank could commence its rate easing cycle.
Against a basket of currencies, the dollar scaled a two-week top of 103.67.
Oil prices, a key indicator of currency parity, dipped on Tuesday due in part to the prospect of rising supply from Russia, slower-than-expected downstream demand in sectors such as jet fuel, and cautious trading ahead of the Fed’s decision on US interest rates.
The Brent crude oil futures contract for May delivery slipped 15 cents to $86.74 a barrel as at 0708 GMT, while US West Texas Intermediate (WTI) prices fell 13 cents to $82.03.
The WTI April contract, with expires tomorrow, fell 13 cents to $82.59.
Both benchmarks reached four-month highs in the previous session, buoyed by lower crude exports from Saudi Arabia and Iraq and signs of stronger demand and economic growth in China and the US Regarding Russia, supply concern stemming from increased exports following Ukrainian attacks on the country’s oil infrastructure continued to pressure prices downward.
Inter-bank market rates for dollar on Tuesday
BID Rs 278.64
OFFER Rs 278.84
Open-market movement
In the open market, the PKR gained 6.00 paisa for buying and 5.00 paisa for selling against USD, closing at 278.54 and 281.15, respectively.
Against Euro, the PKR gained 58.00 paisa for buying and 45.00 paisa for selling, closing at 301.09 and 304.04, respectively.
Against UAE Dirham, the PKR lost 1.00 paisa for buying and remained unchanged for selling, closing at 75.66 and 76.38, respectively.
Against Saudi Riyal, the PKR remained unchanged for both buying and selling, closing at 73.90 and 74.58, respectively.
Open-market rates for dollar on Tuesday
BID Rs 278.54
OFFER Rs 281.15
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