Rupee registers marginal decline against US dollar

The Pakistani rupee registered a marginal decline, depreciating 0.06% against the US dollar in the inter-bank market on Monday.

At close, the local unit settled at 278.12, a loss of Re0.18 against the greenback, as per the State Bank of Pakistan (SBP).

During the two-session previous week, the rupee remained largely stable against the US dollar.

The local unit closed on Tuesday at 277.94, against 277.93 it had closed the week earlier against the greenback.

In a key development, Pakistan’s economic team led by Finance Minister Muhammad Aurangzeb left for Washington on Sunday to hold talks with the International Monetary Fund (IMF) for a new bailout programme.

Talks between Pakistan and the IMF are scheduled for this week in Washington, wherein the government team will request the Fund for approval of a new loan programme. The main ministerial meetings and events will be held from April 17-19.

Globally, the US dollar steadied on Monday, holding its biggest weekly gain since 2022, as escalating conflict in the Middle East and the prospect of stubbornly high US interest rates gave support.

The dollar went up 1.6% against a basket of six major currencies last week after a small but unnerving upside surprise in US inflation cast doubt over bets on US rate cuts, while European policymakers signalled a cut within a few months.

The dollar made a 34-year high on the yen, rising to 153.69. It made a five-month top on the euro on Friday and traded near those levels early in the Asia day, buying a euro for $1.0646.

The initial reaction in currencies seemed to be based more on the receding Federal Reserve rate cut expectations than a weekend retaliatory attack on Israel by Iran, which caused stock markets, bitcoin and oil to drop.

Oil prices, a key indicator of currency parity, slipped by about 1% on Monday, with the market downplaying the risk of broader regional conflagration after Iran’s weekend attack on Israel.

Brent futures for June delivery fell 99 cents, or about 1%, to $89.46 a barrel by 0933 GMT while West Texas Intermediate (WTI) futures for May delivery were down $1.05, or about 1.2%, at $84.61.

Oil benchmarks had risen on Friday in anticipation of Iran’s retaliatory attack, with prices touching their highest since October.

Inter-bank market rates for dollar on Monday

BID                            Rs 278.12

OFFER                      Rs 278.32

Open-market movement

In the open market, the PKR lost 18 paisa for buying and 29 paisa for selling against USD, closing at 277.00 and 279.66, respectively.

Against Euro, the PKR gained 4.85 paisa for buying and 4.64 paisa for selling, closing at 293.99 and 296.83, respectively.

Against UAE Dirham, the PKR lost 14 paisa for buying and 13 paisa for selling, closing at 75.29 and 76.00, respectively.

Against Saudi Riyal, the PKR lost 14 paisa for buying and 11 paisa for selling, closing at 73.27 and 73.94, respectively.

Open-market rates for dollar on Monday

BID                            Rs 277.00

OFFER                      Rs 279.66