Rupee largely stable against US dollar

The Pakistani rupee remained largely stable against the US dollar, appreciating a marginal 0.01% in the inter-bank market on Tuesday.

At close, the local unit settled at 278.10, up by Re0.03 against the greenback, as per the State Bank of Pakistan (SBP).

On Monday, the rupee registered marginal improvement to settle at 278.13 against the US dollar, according to the SBP.

In a key development, Pakistan and Afghanistan are likely to finalise the Preferential Trade Agreement (PTA) during the visit of a Pakistani delegation led by Commerce Secretary, Capt Khurram Agha (retired), sources told Business Recorder.

As per sources, negotiations on the revised Afghanistan-Pakistan Transit Trade Agreement (APTTA) 2021 could not be finalised due to a change of government in Afghanistan. The main sticking points are the demand of Afghanistan side to allow import from India through Wagah, refusal to agree to quantitative restrictions or bans to curb smuggling and the refusal to agree to use the word Border Crossing Point in the agreement.

Internationally, the US dollar was on the back foot on Tuesday, owing to profit taking and pressured in part by a slightly stronger yen as Japanese government officials continued with their jawboning to defend the currency.

Against the greenback, the New Zealand dollar rebounded from a four-month low and last bought $0.5999, and likewise for sterling which firmed to $1.2636, away from last week’s one-month trough of $1.25755.

With a relatively light economic data calendar for the week, the market focus turns to the release of the Federal Reserve’s favoured inflation measure on Friday, which could guide the path of the US interest rate outlook.

The dollar index was last 0.02% lower at 104.20, while the euro rose 0.03% to $1.0840.

Oil prices, a key indicator of currency parity, was little changed on Tuesday, after rising in the previous session, as investors took a more mixed view toward the loss of Russian refinery capacity after recent Ukrainian attacks, though a slightly weaker US dollar offered some support.

Brent crude futures for May slipped 6 cents to $86.69 a barrel, while US West Texas Intermediate (WTI) crude futures fell 4 cents to $81.91 a barrel at 0701 GMT.

Brent rose 1.5% in Monday’s session while WTI gained 1.6% higher after Russia’s government ordered companies to cut output in the second quarter to meet a 9 million barrels per day (bpd) target to comply with pledges to the OPEC+ consumer group.

Inter-bank market rates for dollar on Tuesday

BID                            Rs 278.08

OFFER                      Rs 278.28

Open-market movement

In the open market, the PKR gained 3.00 paisa for buying and 6.00 paisa for selling against USD, closing at 278.06 and 280.67, respectively.

Against Euro, the PKR lost 58.00 paisa for buying and 69.00 paisa for selling, closing at 299.70 and 302.61, respectively.

Against UAE Dirham, the PKR gained 4.00 paisa for buying and 5.00 paisa for selling, closing at 75.45 and 76.16, respectively.

Against Saudi Riyal, the PKR gained 5.00 paisa for both buying and selling, closing at 73.69 and 74.38, respectively.

Open-market rates for dollar on Tuesday

BID                            Rs 278.06

OFFER                      Rs 280.67