Rupee sees marginal decline, settles at 287.43 against US dollar

The Pakistani rupee opened the week on a negative note against the US dollar with a depreciation of 0.16% in the inter-bank market on Monday.

At close, the currency settled at 287.43, a decrease of Re0.46, as per the State Bank of Pakistan (SBP).

During the previous week, the rupee depreciated a marginal 0.18% to close at 286.97 against the US dollar in the inter-bank market.

Three sessions of losses were followed by back-to-back gains for the rupee, but attention diverted to the political front where Prime Minister Shehbaz Sharif reportedly announced the date for the dissolution of National Assembly.

Meanwhile, foreign exchange reserves held by the State Bank of Pakistan (SBP) suffered a minor fall, a non-event for the currency market, but all eyes will stay on how heavy the import bill becomes as the government eased restrictions.

Globally, the dollar was on the backfoot on Monday after a mixed US jobs report provided little directional conviction and as market focus turned to inflation data from the world’s two largest economies due this week.

The US dollar economy added fewer jobs than expected in July, data on Friday showed, but it recorded solid wage gains and a decline in the unemployment rate.

While the dollar fell to a one-week low against a basket of currencies in the aftermath of the data, its losses were capped as the report pointed to a still-tight labour market, suggesting the Federal Reserve may need to keep rates higher for longer.

The US dollar index last stood at 101.98, languishing near Friday’s low of 101.73. Sterling rose 0.04% to $1.2756, while the euro dipped 0.01% to $1.1010.

Oil prices, a key indicator of currency parity, hovered near their highest levels since mid-April after top producers Saudi Arabia and Russia pledged to extend supply cuts through September, further tightening supplies.

Inter-bank market rates for dollar on Monday

BID Rs 287.40

OFFER Rs 287.60

Open-market movement

In the open market, the PKR lost 3.00 rupees for both buying and selling against USD, closing at 292.00 and 295.00, respectively.

Against Euro, the PKR lost 3.00 rupees for both buying and selling, closing at 320.00 and 323.00, respectively.

Against UAE Dirham, the PKR lost 70 paisa for both buying and selling, closing at 81.70 and 82.50, respectively.

Against Saudi Riyal, the PKR lost 50 paisa for both buying and selling, closing at 77.80 and 78.50, respectively.

Open-market rates for dollar on Monday

BID Rs 292.00

OFFER Rs 295.00