Rupee's upward trajectory against the US dollar came to a halt on Tuesday, as the local currency recorded its first drop after seven consecutive gains, depreciating 0.02% in the inter-bank market.
As per the State Bank of Pakistan (SBP), the rupee closed at 174.50 after a day-on-day depreciation of three paisas or 0.02%. On Monday, the currency had appreciated by 0.01%.
On Friday, rupee had gained over Re1 or 0.60% to settle at its highest level since November 23 against the greenback.
The rupee had been on a gaining spree following International Monetary Fund (IMF) approval for its sixth review of the Extended Fund Facility (EFF).
“The rupee is stabilising,” Samiullah Tariq, Head of Research and Development at Pak-Kuwait Investment Company, told Business Recorder.
The expert was of the view that the IMF approval and successful issuance of $1 billion Sukuk led to an appreciation run.
“For the time being, the rupee is moving towards stability,” said Tariq, adding that it will remain in the current bandwidth.
Tariq said upcoming trade figures would determine rupee movement in the immediate future.
On the other hand, oil prices eased on Tuesday ahead of the resumption of indirect talks between the United States and Iran which may revive a nuclear deal that could lead to the removal of sanctions on Iranian oil sales, increasing global supplies.
Brent crude was down 36 cents, or 0.4%, at $92.33 a barrel, after hitting a seven-year high of $94 on Monday. The US West Texas Intermediate crude eased 26 cents, or 0.3%, to $91.06 a barrel.
Inter-bank market rates for dollar on Tuesday
BID Rs 174.40
OFFER Rs 174.50
In the open market, the PKR gained 30 paisas for both buying and selling against USD, closing at 175.50 and 176.50, respectively.
Against Euro, the PKR gained 10 paisas for buying and 50 paisas for selling, closing at 198.50 and 200, respectively.
Against UAE Dirham, the PKR gained 2 paisas for buying and 10 paisas for selling, closing at 48.40 and 48.80, respectively.
Against Saudi Riyal, the PKR gained 5 paisas for buying and 10 paisas for selling, closing at 46.15 and 46.55, respectively.
Open-market rates for dollar on Tuesday
BID Rs 175.50
OFFER Rs 176.50