Rupee remains largely unchanged against US dollar

The Pakistani rupee remained largely stable against the US dollar in the inter-bank market on Monday.

At close, the local unit settled at 278.40, a loss of Re0.01 against the greenback, as per the State Bank of Pakistan (SBP).

During the previous week, the rupee registered a slight decline against the US dollar as it settled lower by Re0.08 or 0.2%. The local unit ended at 278.39 against 278.31 it had closed the week earlier against the greenback.

The rupee started the previous week with a minor loss but remained largely stable in the next two sessions, followed by a marginal loss in the fourth session. Friday’s session was positive for the local currency as it gained Re0.09 that day.

In a key development, the International Monetary Fund (IMF) said its Executive Board would meet on April 29 (today) to discuss the approval of $1.1-billion funding for Pakistan.

The inflow from the IMF will give some support to foreign exchange reserves held by the State Bank of Pakistan (SBP), which fell below $8 billion as of April 19 due to external debt repayments.

Internationally, the Japanese yen jumped suddenly against the US dollar on Monday, with traders on high alert for signs of intervention by Japanese authorities to boost the currency that is languishing near 34-year lows.

The dollar fell sharply to 156.55 yen from as high as 160.245, and it was not immediately clear what was behind the move.

Traders are on edge for any signs of action from Tokyo to prop up a currency that has fallen 11% against the dollar so far this year.

Oil prices, a key indicator of currency parity, were down 1% on Monday, erasing gains from Friday as Israel-Hamas peace talks in Cairo eased fears of a wider conflict in the Middle East and US inflation data further dimmed the prospects of interest rate cuts anytime soon.

Brent crude futures fell by as much as 98 cents, or 1.09%, to $88.52 a barrel by 0644 GMT.

West Texas Intermediate (WTI) futures were down 83 cents, or 0.99%, at $83.02 a barrel.

Inter-bank market rates for dollar on Monday

BID                            Rs 278.40

OFFER                      Rs 278.60

Open-market movement

In the open market, the PKR gained 3 paisa for buying and lost 9 paisa for selling against USD, closing at 277.00 and 279.68, respectively.

Against Euro, the PKR lost 82 paisa for buying and 79 paisa for selling, closing at 294.60 and 297.35, respectively.

Against UAE Dirham, the PKR remained unchanged for buying and lost 1 paisa for selling, closing at 75.01 and 75.74, respectively.

Against Saudi Riyal, the PKR gained 1 paisa for buying and remained unchanged for selling, closing at 73.27 and 73.96, respectively.

Open-market rates for dollar on Monday

BID                            Rs 277.00

OFFER                      Rs 279.68