The ongoing downward momentum pulled the Pakistani rupee lower for the eighth consecutive session as the currency depreciated 0.21% against the US dollar on Tuesday.

At close, the rupee settled at 288.52, a decrease of Re0.6, as per the State Bank of Pakistan (SBP).

The currency has lost nearly 4.2% or Rs12.02 against the US dollar in the last eight trading sessions.

On Monday, the rupee registered losses against the US dollar for the seventh successive session, depreciating 0.39% to settle at 287.92 in the inter-bank market.

In a key development, the National Electric Power Regulatory Authority (NEPRA) on Monday gave its nod for an increase in basic electricity tariff by Rs7.5 per unit from July 1, 2023, across the country with chairman’s remarks that it is an election year and political decisions are being taken to pass a lower burden on 68% protected consumers.

Internationally, the US dollar rose ahead of this week’s trio of major central bank meetings while the euro hit a two-week low on Tuesday as a worsening downturn in eurozone business muddied the bloc’s rate outlook against a still-hawkish European Central Bank (ECB).

Markets have fully priced in a 25-basis-point rate hike by the ECB at its meeting this week, though the path of future rate increases beyond July remains up in the air.

The Federal Reserve also meets this week and is expected to deliver a 25 basis point rate hike, with a majority of economists polled by Reuters expecting that to mark the last increase of the central bank’s current tightening cycle.

Oil prices, a key indicator of currency parity, were steady on Tuesday, hovering near three-month highs as signs of tighter supplies and pledges by Chinese authorities to shore up the world’s second-biggest economy lifted sentiment, while weaker Western economic data weighed.

Inter-bank market rates for dollar on Tuesday

BID Rs 288.40

OFFER Rs 288.60

Open-market movement

In the open market, the PKR lost 50 paisa for both buying and selling against USD, closing at 290.50 and 293.50, respectively.

Against Euro, the PKR lost 1.00 rupee for both buying and selling, closing at 321.00 and 324.00, respectively.

Against UAE Dirham, the PKR lost 80 paisa for buying and 70 paisa for selling, closing at 80.80 and 81.50, respectively.

Against Saudi Riyal, the PKR remained unchanged for both buying and selling, closing at 77.50 and 78.20, respectively.

Open-market rates for dollar on Tuesday

BID Rs 290.50

OFFER Rs 293.50