Rupee remains largely stable against US dollar

The Pakistani rupee remained largely stable against the US dollar in the inter-bank market on Monday.

At close, the local unit settled at 278.13, up by Re0.01 against the greenback, as per the State Bank of Pakistan (SBP).

During the previous week, the rupee increased marginally for the fourth consecutive week as it gained Re0.60 or 0.20% against the US dollar in the inter-bank market.

The local unit closed the week at 278.14, compared to 278.74 it had closed the week earlier against the greenback.

In a key development during the previous week, Pakistani authorities reached a staff-level agreement with the International Monetary Fund (IMF) on the second and final review of the $3 billion Stand-By Arrangement (SBA).

The agreement is subject to approval by the IMF’s Executive Board, upon which the remaining access under the SBA, $1.1 billion, will become available for the country.

Globally, the US dollar was on the front foot on Monday and kept the yen pinned near a multi-decade low, though the threat of currency intervention from Japanese authorities prevented the greenback from heading further north.

Market expectations are also for a Fed easing cycle to begin in June, a run of resilient US economic data has raised doubts the central bank is indeed on course for three rate cuts this year.

The dollar index was last 0.03% higher at 104.46, having clocked a weekly gain of nearly 1% last week.

Oil prices, a key indicator of currency parity, rose in Asian trading on Monday on concerns over tighter global supply brought about by escalating conflicts in the Middle East and between Russia and Ukraine, while a shrinking US rig count added to upward price pressure.

Brent crude futures climbed 39 cents, or 0.5%, to $85.82 a barrel at 0759 GMT.

US crude futures gained 40 cents, or 0.5%, to $81.03 per barrel.

Both benchmarks fell less than 1% last week versus the previous week.

A stronger US dollar, which rose about 1% over the last week, has kept a lid on prices.

Inter-bank market rates for dollar on Monday

BID                            Rs 278.13

OFFER                      Rs 278.33

Open-market movement

In the open market, the PKR gained 5.00 paisa for buying and remained unchanged for selling against USD, closing at 278.09 and 280.73, respectively.

Against Euro, the PKR gained 40.00 paisa for buying and 54.00 paisa for selling, closing at 299.12 and 301.92, respectively.

Against UAE Dirham, the PKR gained 1.00 paisa for both buying and selling, closing at 75.49 and 76.21, respectively.

Against Saudi Riyal, the PKR remained unchanged for buying and 1.00 paisa for selling, closing at 73.74 and 74.43, respectively.

Open-market rates for dollar on Monday

BID                            Rs 278.09

OFFER                      Rs 280.73