Rupee registers losses, settles at 261.5 against US dollar

The Pakistani rupee ended its four-session gaining spree against the US dollar after the currency registered a depreciation of 0.6% on Tuesday.

As per the State Bank of Pakistan (SBP), the rupee settled at 261.50 against the greenback, a decline of Rs1.58 in the inter-bank market.

The rupee had registered its fourth successive gain on Monday, settling at 259.92 after an appreciation of 0.03% against the greenback.

In a key development, the SBP decided to convene an emergency meeting of the Monetary Policy Committee (MPC) on Thursday, March 2, to deal with emerging risks to the economy.

MPC meeting preponed, will now be held on March 2, says SBP

Globally, the US dollar resumed its rally on Tuesday following a brief pause at the start of the week, putting it back on track to end the month with an impressive gain after a four-month losing streak.

Market expectations that the US Federal Reserve would have to raise rates more than initially expected, which gained steam following a slew of upbeat economic data from the United States, have sent the greenback on a tear in recent weeks.

The dollar index, which measures the currency against a basket of peers, rose 0.18% to 104.84 in Asia trade and was eyeing a monthly gain of more than 2.5%, its first since September.

Oil prices, a key indicator of currency parity, were steady in Asian trade on Tuesday, supported by hopes a solid economic rebound in China will drive up fuel demand, offsetting worries about further US interest rate hikes potentially hurting demand in the world’s biggest economy.

Inter-bank market rates for dollar on Tuesday

BID Rs 261.50

OFFER Rs 263.50

Open-market movement

In the open market, the PKR lost 2 rupees for buying and selling against USD, closing at 264.00 and 267.00, respectively.

Against Euro, the PKR lost 4.50 rupees for buying and selling, closing at 277.00 and 280.00 respectively.

Against UAE Dirham, the PKR remained unchanged for buying and selling, closing at 74.00 and 74.70, respectively.

Against Saudi Riyal, the PKR lost 70 paisa for buying and selling, closing at 70.00 and 70.70, respectively.

Open-market rates for dollar on Tuesday

BID Rs 264

OFFER Rs 267