Rupee loses ground against US dollar, falls 0.14%

Pakistan's rupee started off the week on a negative note, depreciating 0.14% against the US dollar in the inter-bank market on Monday, as high oil prices weighed on market sentiment.

As per the State Bank of Pakistan (SBP), the rupee closed at 176.49 after a day-on-day depreciation of 25 paisas or 0.14%. The fall comes after the rupee ended the previous week on Friday with a gain against the US dollar.

Rupee breaks losing streak, gains against US dollar

The latest fall comes as oil prices rose on Monday on worries about supply disruption amid rising tensions in Eastern Europe and the Middle East, which could make an already tight market even tighter, while OPEC and its allies continued to struggle to raise output.

Brent crude futures rose 81 cents, or 0.9%, to $88.70 a barrel, reversing a 0.6% loss on Friday.

Oil prices are directly related to sentiment around the currency as expensive imports contribute to deterioration in Pakistan's current account, putting pressure on the rupee.

Pakistan reported a current account deficit of $1.93 billion on Saturday, a marginal 2% increase on a monthly basis.

Meanwhile, the SBP also decided to keep the interest rates unchanged at 9.75% on Monday.

Inter-bank market rates for dollar on Monday

BID Rs 176.40

OFFER Rs 176.50

Open-market movement

In the open market, the PKR lost 70 paisas for both buying and selling against USD, closing at 179 and 180, respectively.

Against Euro, the PKR lost 10 paisas for buying and 5 paisas for selling, closing at 199.60 and 201.50, respectively.

Against UAE Dirham, the PKR lost 10 paisas for both buying and selling, closing at 48.82 and 49.30, respectively.

Against Saudi Riyal, the PKR lost 10 paisas for both buying and selling as well, closing at 46.85 and 47.30, respectively.

Open-market rates for dollar on Monday

BID Rs 179

OFFER Rs 180