Inter-bank: rupee sees marginal decline, settles at 279.12 against US dollar

The Pakistani rupee registered a marginal loss against the US dollar, as it depreciated 0.11% in the inter-bank market on Monday.

As per the State Bank of Pakistan (SBP), the rupee settled at 279.12 after a decrease of Re0.32 in the inter-bank market.

During the previous week, the rupee had snapped its rally against the US dollar and closed Rs1.18 or 0.42% week-on-week lower to settle at 278.80 in the inter-bank market.

The local currency, as per a brokerage house, fell amid higher dollar demand to make foreign payments.

Earlier, the rupee maintained a positive close for 28 successive sessions - one of the longest appreciation runs as it cumulatively gained 10.93% since hitting a record low of 307.1 in the inter-bank market on September 5.

The unprecedented increase largely came on the back of a crackdown against smuggling and controls on exchange companies.

Globally, Japan’s yen took the spotlight in Asia on Monday, weakening to the 150-per-dollar level, but just briefly, as investors betting on a further rise in dollar yields lost out to those expecting Japanese authorities will intervene in markets.

US Treasuries were subdued as investors hunkered down for a European Central Bank meeting and US GDP data later in the week.

Ten-year yields were around 4.97%, having briefly popped above 5% last week after Federal Reserve Chair Jerome Powell said the US economy’s strength and tight labor markets might warrant tighter financial conditions.

The dollar index added 0.02% to 106.19, with the euro down 0.07% at $1.0586.

Oil prices, a key indicator of currency parity, fell more than $1 on Monday as concerns about supply disruptions eased due to diplomatic efforts intensifying in an attempt to contain the conflict between Israel and the Palestinian Hamas group.

Inter-bank market rates for dollar on Monday

BID                            Rs 279.10

OFFER                      Rs 279.30

Open-market movement

In the open market, the PKR lost 50 paisa for both buying and selling against USD, closing at 278.00 and 281.00, respectively.

Against Euro, the PKR remained unchanged for both buying and selling, closing at 293.00 and 296.00, respectively.

Against UAE Dirham, the PKR lost 1.00 rupee for both buying and selling, closing at 78.00 and 78.75, respectively.

Against Saudi Riyal, the PKR gained 30 paisa for both buying and selling, closing at 74.20 and 74.90, respectively.

Open-market rates for dollar on Monday

BID                            Rs 278.00

OFFER                      Rs 281.00