Rupee records marginal gain against US dollar

Pakistan's rupee registered a minor gain against the US dollar, appreciating 0.06% in the inter-bank market on Monday.

As per the State Bank of Pakistan (SBP), the rupee closed at 175.75 after a day-on-day appreciation of 11 paisas or 0.06%.

The rupee ended 0.65% lower against the US dollar during the previous week as mounting tension between Russia and Ukraine, and repeated warnings by Washington over the conflict kept global markets on the backfoot.

Rupee falls near 176 against US dollar

The gain in local currency comes as oil prices calmed down after fluctuating initially on Monday, as investors eyed contrasting scenarios of tighter Russian energy supplies due to the Ukraine crisis and more crude coming to the market on a possible nuclear deal between Iran and world powers.

Brent crude futures were at $93.39 a barrel, down 15 cents or 0.2%, after earlier touching $95, while US West Texas Intermediate (WTI) crude futures had climbed 7 cents to $91.14 a barrel, off an earlier high of $92.93.

“Rupee will stabilise around this range, however, it depends upon the oil price,” Saad Hashmey, Executive Director at BMA Capital, told Business Recorder.

Hashmey was of the view that the rupee will continue to trade in the range of 170-180.

Meanwhile, another market expert told Business Recorder that the latest increase in prices of petroleum products, alongside the Weighted Average Cost of Gas (WACOG) bill that was passed by the Senate last week, could fan inflation further.

Amid WACOG bill approval, gas rates for domestic consumers are expected to increase by 20%, adding to the CPI figures.

“Higher inflation rate could push expectations of another interest rate hike in the upcoming Monetary Policy Committee (MPC) meeting,” said the expert. “However, calm on the global front might bring some relief.”

Inter-bank market rates for dollar on Monday

BID Rs 175.70

OFFER Rs 175.80

Open-market movement

In the open market, the PKR lost 30 paisas for both buying and selling against USD, closing at 176.80 and 177.80, respectively.

Against Euro, the PKR remained unchanged for both buying and selling, closing at 199.10 and 201, respectively.

Against UAE Dirham, the PKR gained 7 paisas for buying and 10 paisas for selling, closing at 48.55 and 49, respectively.

Against Saudi Riyal, the PKR gained 5 paisas for both buying and selling closing, at 46.55 and 47, respectively.

Open-market rates for dollar on Monday

BID Rs 176.80

OFFER Rs 177.80