Rupee remains stable against US dollar

Pakistan’s rupee remained largely stable against the US dollar in the inter-bank market, and appreciated 0.01% on Tuesday.

As per the State Bank of Pakistan (SBP), the rupee closed at 221.65 after an appreciation of Re0.01.

On Monday, Pakistan’s rupee had registered back-to-back gains against the US dollar, and closed at 221.66 after an appreciation of Re0.26 or 0.12% in the inter-bank market. This came after the rupee had remained largely stable during the previous week as well, hovering around the 221-222 level in the inter-bank market even as the US dollar strengthened against other currencies.

In a key development, Finance Minster Ishaq Dar and Governor State Bank of Pakistan (SBP) on Monday discussed the fiscal and monetary measures being undertaken for economic stability, revival and growth of the country.

SBP Governor Jameel Ahmad said the continuing administrative efforts by the government and the policy measures of the central bank had resulted in stability, and controlled exchange rate volatility.

Moreover, in an interview with a private channel on Monday night, the finance minister also informed that the government is considering imposing measures against institutions involved in currency manipulation.

“There are two means of action, the regulator (SBP) can impose a penalty on such institutions, while the federal government could take fiscal actions. We are considering both,” said Dar.

Globally, the US dollar steadied on Tuesday as some of the momentum ebbed out of bets on China’s reopening that had been weighing on the safe haven currency, and as traders looked ahead to US midterm elections later in the day.

The aggressive pace of US rate hikes has caused US Treasury yields to rise and pushed the dollar to multi-year highs against most major peers, though speculation is growing that this trend is starting to come to its end.

Oil prices, a key indicator of currency parity, slipped on Tuesday as recession concerns and worsening COVID-19 outbreaks in top crude importer China heightened fears of lower fuel demand.

Inter-bank market rates for dollar on Tuesday

BID Rs 221.75

OFFER Rs 222.75

Open-market movement

In the open market, the PKR remained unchanged for both buying and selling against USD, closing at 225.50 and 227.75, respectively.

Against Euro, the PKR remained unchanged for both buying and selling, closing at 234 and 236 respectively.

Against UAE Dirham, the PKR remained unchanged for both buying and selling, closing at 64.80 and 65.30, respectively.

Against Saudi Riyal, the PKR remained unchanged for buying while losing 10 paisas for selling, closing at 62.70 and 63.30, respectively.

Open-market rates for dollar on Tuesday

BID Rs 225.50

OFFER Rs 227.75