Rupee records marginal loss against US dollar

The Pakistani rupee registered a marginal loss against the US dollar, depreciating 0.04% in the inter-bank market on Monday.

At close, the local unit settled at 278.62, a loss of Re0.11 against the greenback.

During a shortened previous week, the rupee had remained unchanged against the US dollar as it closed at 278.51, the same as it had closed the week earlier against the greenback, according to the State Bank of Pakistan (SBP).

In recent weeks, the domestic currency has largely been around 277-279 against the dollar as Pakistan moves forward with its plan to win a longer and larger International Monetary Fund (IMF) bailout programme.

Globally, the US dollar was steady on Monday as traders looked ahead to fresh clues on the US inflation path that will likely influence interest rates.

“The US dollar has opened bid this morning and appears to have broken higher following better US PMI data on Friday night and political concerns ahead of the French election,” said Tony Sycamore, a Sydney-based markets analyst at IG.

The dollar index, which measures the US unit against six peers, was last at 105.84, hovering close to the nearly eight week high of 105.91 it touched last week.

The spotlight this week will be on the US personal consumption expenditures (PCE) price index - the Federal Reserve’s favoured gauge of inflation - due on Friday.

Oil prices, a key indicator of currency parity, firmed slightly on Monday as traders weighed support from expected summer demand and geopolitical tensions against a stronger dollar.

Brent crude futures were up 15 cents, or 0.2%, at $85.39 a barrel by 0850 GMT.

US West Texas Intermediate crude futures were at $80.86 a barrel, up 13 cents, or 0.2%. Both benchmarks gained about 3% last week for their second consecutive weekly gains.

Inter-bank market rates for dollar on Monday

BID Rs 278.62

OFFER Rs 278.82

Open-market movement

In the open market, the PKR remained unchanged for buying and gained 3 paise for selling against USD, closing at 277.70 and 280.32, respectively.

Against Euro, the PKR lost 16 paise for buying and 11 paise for selling, closing at 294.25 and 297.12, respectively.

Against UAE Dirham, the PKR remained unchanged for both buying and selling, closing at 75.09 and 75.83, respectively.

Against Saudi Riyal, the PKR remained unchanged for buying and gained 1 paisa for selling, closing at 73.10 and 73.80, respectively.

Open-market rates for dollar on Monday

BID Rs 277.70

OFFER Rs 280.32