Fourth successive gain: rupee settles at 259.92 against US dollar

The Pakistani rupee registered its fourth successive gain against the US dollar after a marginal improvement of 0.03% on Monday.

As per the State Bank of Pakistan (SBP), the rupee settled at 259.92 against the greenback, up Re0.07 in the inter-bank market.

The rupee appreciated nearly 1.1% during the previous week to close at 259.99, as news of an inflow of $700 million from China boosted sentiment.

The currency has been on a gaining spree since it hit its all-time low of over 276 earlier in February, with realisation of export proceeds and a higher flow of remittances through legal channels aiding the recovery.

The country’s foreign exchange reserves have increased marginally but the level is still at less than one month of import cover, and underscores the urgent need for authorities to revive the stalled International Monetary Fund (IMF) programme.

Globally, the dollar was on the frontfoot on Monday, hovering near a seven-week peak after a slew of strong U.S. economic data reinforced the view that the Federal Reserve will have to raise interest rates further and for longer.

The dollar index, which measures the US currency against six major peers, was at 105.17, just below the seven-week peak of 105.32 it touched on Friday after hotter-than-expected data. The index is up 3% for February and sets to snap a four-month losing streak.

The personal consumption expenditures (PCE) price index, the Federal Reserve’s preferred gauge of inflation, shot up 0.6% last month after gaining 0.2% in December, according to data on Friday.

Oil prices, a key indicator of currency parity, inched lower in volatile trade on Monday, as a stronger dollar and fears of recession risks offset gains arising from Russia’s plans to deepen oil supply cuts.

Inter-bank market rates for dollar on Monday

BID Rs 259.90

OFFER Rs 261.90

Open-market movement

In the open market, the PKR gained 3 rupees for buying and selling against USD, closing at 262.00 and 265.00, respectively.

Against Euro, the PKR gained 4.50 rupees for buying and selling, closing at 272.50 and 275.50 respectively.

Against UAE Dirham, the PKR gained 50 paisa for buying and selling, closing at 74.00 and 77.70, respectively.

Against Saudi Riyal, the PKR gained 70 paisa for buying and selling, closing at 69.30 and 70.00, respectively.

Open-market rates for dollar on Monday

BID Rs 262

OFFER Rs 265