7th straight fall: rupee settles at 287.92 against US dollar
- Currency depreciates 0.39% in inter-bank market
- Cumulatively, rupee has depreciated 4% in less than two weeks
Pakistani rupee sustained losses for the seventh successive session against the US dollar as it depreciated 0.39% on Monday.
At close, the currency settled at 287.92, a decrease of Rs1.11, as per the State Bank of Pakistan (SBP).
In the last seven trading sessions, the rupee has lost nearly 4% or Rs11.46 against the US dollar.
During the previous week, the rupee underwent significant depreciation falling 3.2% to settle at 286.81 against the US dollar in the inter-bank market.
The fall comes as euphoria over the International Monetary Fund (IMF) deal faded to make way for fundamentals. The depreciation in the inter-bank market also reduced the gap with rates in the open market, one of the key metrics of how Pakistan’s Stand-By Arrangement (SBA) with the IMF would be judged as the programme moves forward.
Pakistan reported higher foreign exchange reserves during the previous week, but experts believe pressure on the currency will likely stay due to lifting of import restrictions and backlog of inward shipments that would make their way into the country.
In a key development, the United States had said that there is no quick solution to Pakistan’s economic problems but it should continue to work with the IMF to overcome its difficulties.
Globally, the US dollar made firm starts on Monday to a week full of central bank meetings.
The US dollar index was steady at 101.04.
Oil prices, a key indicator of currency parity, were steady on Monday as traders expected more rate hikes from US and European central banks, but tightening supply and hopes for Chinese stimulus underpinned Brent at well above $80 a barrel.
Inter-bank market rates for dollar on Monday
BID Rs 287.80
OFFER Rs 288.00
Open-market movement
In the open market, the PKR lost 2.00 rupees for both buying and selling, against USD, closing at 290.00 and 293.00, respectively.
Against Euro, the PKR remained unchanged for both buying and selling, closing at 320.00 and 323.00 respectively.
Against UAE Dirham, the PKR lost 70 paisa for buying and 80 paisa for selling, closing at 80.00 and 80.80, respectively.
Against Saudi Riyal, the PKR lost 80 paisa for buying and 70 paisa for selling, closing at 77.50 and 78.20, respectively.
Open-market rates for dollar on Monday
BID Rs 290.00
OFFER Rs 293.00
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