4th successive decline: rupee settles at 218.89 against US dollar

Pakistan’s rupee registered a decline for the fourth successive session against the US dollar, and depreciated 0.21% in the inter-bank market on Monday.

As per the State Bank of Pakistan (SBP), the rupee closed at 218.89 after depreciating Re0.46 or 0.21%. However, despite the depreciation, the rupee has gained 4.36% during the ongoing month.

On Friday, rupee had dipped against the US dollar, and closed at 218.43 after depreciating Re0.05 or 0.02% for the third consecutive session.

After staging a recovery since the last week of September, amid a shift in sentiment driven by Ishaq Dar's arrival at the Ministry of Finance and measures taken by the central bank and authorities, the currency is now showing signs of stabilising against the greenback.

At the end of the previous week, it was reported that Dar will seek rescheduling of some $27 billion worth of non-Paris Club debt largely owed to China, but will not pursue haircuts as part of any restructuring.

The finance minister has also called for greater policy support from the International Monetary Fund (IMF) and multilateral donors in the backdrop of the climate-induced catastrophe and losses suffered by Pakistan.

Internationally, the US dollar remained dominant against other currencies, after data showed that US inflation rose in September by 0.4% from August, reinforcing bets of another aggressive rate hike at the next Federal Open Market Committee (FOMC) meeting.

The US dollar index, which measures the greenback against a basket of currencies including the yen, firmed at 112.93.

Oil prices, a key indicator of currency parity, were steady on Monday as China’s continuation of loose monetary policy was offset by fears that high inflation and energy costs could drag the global economy into recession.

Inter-bank market rates for dollar on Monday

BID Rs 219

OFFER Rs 220

Open-market movement

In the open market, the PKR gained 50 paisas for buying and 30 paisas for selling against USD, closing at 223.50 and 225.70, respectively.

Against Euro, the PKR gained 4 rupees for both buying and selling, closing at 218 and 220 respectively.

Against UAE Dirham, the PKR gained 1.20 rupees for buying and 1.10 rupees for selling, closing at 60.80 and 61.40, respectively.

Against Saudi Riyal, the PKR gained 1.05 rupees for buying and one rupee for selling, closing at 59.25 and 59.80, respectively.

Open-market rates for dollar on Monday

BID Rs 223.50

OFFER Rs 225.70