Rupee registers marginal gain against US dollar

The Pakistani rupee registered some improvement, appreciating 0.1% against the US dollar in the inter-bank market on Monday.

At close, the currency settled at 278.11, a gain of Re0.29 against the greenback.

During the previous week, the rupee remained largely stable against the US dollar keeping its position around the 277-279 mark where it has traded for a number of months.

The domestic currency settled at 278.40 against the greenback, according to the State Bank of Pakistan (SBP), only marginally lower than 278.38 where it had closed the week earlier.

In a key development, the International Monetary Fund (IMF) said on Friday that it had reached a staff level agreement (SLA) with Pakistan for a $7-billion, 37-month loan programme aimed at cementing stability and inclusive growth.

The IMF said the new Extended Fund Facility (EFF) was subject to approval by its Executive Board and obtain “timely confirmation of necessary financing assurances from Pakistan’s development and bilateral partners.”

Market experts said that the development will be key to ensure currency stability.

“We anticipate the Pakistani Rupee (PKR) to remain stable in short-mid term driven by a positive sentiment arising from the new programme,” said Arif Habib Limited (AHL).

Globally, the US dollar rose on safety bids on Monday in the wake of the attempted assassination of former US President Donald Trump, which in turn left the yen struggling to stay afloat despite Tokyo’s suspected intervention efforts.

Trading was thinned in Asia with Japan out for a holiday, though news of the Trump shooting dominated the cautious market mood and had investors narrowing the odds of a Trump victory come November’s US elections.

The US dollar rose broadly and pushed the euro 0.21% lower to $1.0887, while sterling fell 0.18% to $1.2966.

Oil prices, a key indicator of currency parity, held ground on Monday as downward pressure from a stronger US dollar and concern about demand in top importer China offset support from strong demand elsewhere and OPEC+ supply restraint.

The dollar firmed as trading on a victory by Donald Trump in the coming US election gathered steam after an attempted assassination of the former US President.

A stronger dollar makes oil more expensive for buyers with other currencies and tends to weigh on oil prices.

Brent crude futures were up 8 cents, or 0.1%, at $85.11 a barrel by 1000 GMT.

Inter-bank market rates for dollar on Monday

BID                            Rs 278.11

OFFER                      Rs 278.31

Open-market movement

In the open market, the PKR gained 1 paisa for buying and remained unchanged for selling against USD, closing at 278.99 and 280.50, respectively.

Against Euro, the PKR gained 46 paise for buying and 43 paise for selling, closing at 301.64 and 304.57, respectively.

Against UAE Dirham, the PKR gained 2 paise for both buying and selling, closing at 75.60 and 76.33, respectively.

Against Saudi Riyal, the PKR gained 3 paise for both buying and selling, closing at 73.84 and 74.52, respectively.

Open-market rates for dollar on Monday

BID                            Rs 278.99

OFFER                      Rs 280.50