Rupee continues to decline, settles at 282.29 against US dollar

The Pakistani rupee registered back-to-back losses against the US dollar, depreciating 0.24% in the inter-bank market on Tuesday.

As per the State Bank of Pakistan (SBP), the rupee settled at 282.29, a decline of Re0.68.

After appreciating marginally on Friday, the rupee started this week on a negative note, settling at 281.61 against the greenback in the inter-bank market on Monday, a decline of Re0.84 or 0.3%.

The market is keenly awaiting resumption of the stalled International Monetary Fund (IMF) Extended Fund Facility (EFF) programme, which is crucial for the cash-strapped Pakistani economy.

In a key development, it was learnt that the government has reportedly decided to seek the United States’ help in reaching a staff-level deal with IMF.

Finance Minister Ishaq Dar will be reaching out to Ambassador Donald Blome to seek the Biden Administration’s role in reaching a staff-level deal with the IMF, it was reported.

Meanwhile internationally, the US dollar languished near a multi-week low on Tuesday as fears of a broader systemic crisis following the collapse of a US tech-focused lender left traders speculating that the Federal Reserve could pause its aggressive rate-hiking cycle.

Market jitters continued to set the tone for a second straight trading day in the wake of the sudden collapse of Silicon Valley Bank (SVB) and Signature Bank, although US President Joe Biden on Monday vowed to take action to ensure the safety of the US banking system.

Against a basket of currencies, the US dollar index rose 0.09% to 103.77, after sliding 0.9% on Monday and hitting a one-month low of 103.47.

Oil prices, a key indicator of currency parity, fell more than $1 on Tuesday, extending the previous day’s slide, as the collapse of Silicon Valley Bank rattled equities markets and sparked fear about a fresh financial crisis.

Inter-bank market rates for dollar on Tuesday

BID Rs 282.30

OFFER Rs 285.30

Open-market movement

In the open market, the PKR gained 1 rupee for both buying and selling against USD, closing at 281 and 284, respectively.

Against Euro, the PKR lost 1 rupee for both buying and selling, closing at 298.00 and 301.00 respectively.

Against UAE Dirham, the PKR remained unchanged for both buying and selling, closing at 76.80 and 77.50, respectively.

Against Saudi Riyal, the PKR gained 50 paisa for both buying and selling, closing at 74.30 and 75.00, respectively.

Open-market rates for dollar on Tuesday

BID Rs 281.00

OFFER Rs 284.00