Rupee scales lower against US dollar

The Pakistani rupee recorded a marginal decline against the US dollar, depreciating 0.02% in the inter-bank market on Tuesday.

At close, the local unit settled at 279.31, a loss of Re0.05, against the greenback, as per the State Bank of Pakistan (SBP).

On Monday, the rupee registered a marginal decline to settle at 279.26 against the US dollar, according to the SBP.

In a key development, newly-elected Prime Minister Shehbaz Sharif Monday directed authorities concerned to “immediately engage” with the International Monetary Fund (IMF) to advance discussions regarding the Extended Fund Facility (EFF), Radio Pakistan reported.

He gave these directions while presiding over a meeting to review strategies for the country’s economic revival and growth in Islamabad hours after he was elected the premier.

Globally, the US dollar held steady on the yuan on Tuesday as markets digested a welter of policy statements out of China, while a rebound in Tokyo inflation seemed to take Japan a step closer to the end of negative interest rates.

There was more action in bitcoin, which gained 1.2% to $68,341 after surging more than 7% on Monday. The blockchain asset has benefited from flows into cryptocurrency exchange-traded funds, most notably in the United States.

Early news out of China’s National People’s Congress (NPC) contained few surprised with Beijing sticking with an economic growth target of 5% and a budget deficit of 3%.

Analysts say meeting the target will be a challenge as a protracted property crisis, low consumption, slow global growth and geopolitical tensions drag on activity. The yuan was little changed at 7.1987, as markets hoped more concrete stimulus measures would emerge.

The dollar index, which measures the currency against six major peers, was unchanged at 103.840.

Oil prices, a key indicator of currency parity, steadied on Tuesday after falling in the previous session as the prospect of a tighter market due to OPEC+ supply restraint offset concern over Chinese growth and uncertainty over the pace of interest rate cuts.

China set an economic growth target for 2024 of around 5%, similar to last year’s goal and in line with analysts’ expectations, but the lack of big ticket stimulus plans to prop up its struggling economy disappointed investors.

Brent crude was up 15 cents, or 0.2%, to $82.95 a barrel by 0911 GMT, while US West Texas Intermediate (WTI) fell 21 cents, or 0.3%, to $78.53.

Brent has gained almost 8% this year.

Inter-bank market rates for dollar on Tuesday

BID Rs 279.31

OFFER Rs 279.51

Open-market movement

In the open market, the PKR lost 4.00 paisa for buying and remained unchanged for selling against USD, closing at 279.45 and 282.05, respectively.

Against Euro, the PKR lost 22.00 paisa for buying and 23.00 paisa for selling, closing at 301.86 and 304.74, respectively.

Against UAE Dirham, the PKR gained 2.00 paisa for buying and 1.00 paisa for selling, closing at 75.95 and 76.70, respectively.

Against Saudi Riyal, the PKR gained 1.00 paisa for both buying and selling, closing at 74.20 and 74.89, respectively.

Open-market rates for dollar on Tuesday

BID Rs 279.45

OFFER Rs 282.05