- Currency has made major strides since July 28 when it registered its all-time low of 239.94
The rupee continued its winning momentum against the US dollar on Monday, appreciating for the 10th successive session to close at 213.98 in the inter-bank market.
As per the State Bank of Pakistan (SBP), the currency settled at 213.98, an appreciation of 0.71% or Rs1.51 against the greenback. The currency even hit 212.5 during intra-day trading.
The rupee gained nearly 4% against the US dollar during the shortened previous week to eventually close at 215.49 in the inter-bank market.
The currency has strengthened consistently since hitting its all-time low of 239.94 against the US dollar last month. In the last 10 sessions, the rupee has appreciated over 12%.
The winning run comes on the back of major developments over the International Monetary Fund (IMF) front, starting from the Washington-based lender’s statement on Pakistan completing its last prior action, exporters realising their proceeds, and a lower import bill that took pressure off persistently-falling foreign exchange reserves.
Moreover, it was also learnt that Saudi Arabia plans to renew its $3-billion deposit in assistance to Pakistan, while also intending to provide $100 million per month for 10 months in petroleum products that would be granted as additional support.
The development would mean Pakistan’s funding gap, as the IMF calls it, has been covered after Saudi Arabia’s commitment. The assurance will pave way for the IMF board’s approval at the end of the month.
Furthermore, UAE’s commitment to invest $1 billion in different sectors of the economy has also boosted market sentiment.
Similarly, oil prices, a key determinant of currency parity, dropped for a second session on Monday as weak China economic data triggered concerns about demand at the world’s largest crude importer while the head of the world’s top exporter, Saudi Aramco, said it was ready to ramp up output.
Brent crude futures fell 89 cents, or 0.9%, to $97.26 a barrel, while US West Texas Intermediate crude was at $91.27 a barrel, down 82 cents, or 0.9%, after a 2.4% drop in the previous session.
Inter-bank market rates for dollar on Monday
BID Rs 213
OFFER Rs 214
In the open market, the PKR gained 3 rupees for both buying and selling against USD, closing at 208 and 210, respectively.
Against Euro, the PKR gained 6 rupees for both buying and selling, closing at 211 and 213 respectively.
Against UAE Dirham, the PKR gained 80 paisas for buying and one rupee for selling, closing at 56.70 and 57.20, respectively.
Against Saudi Riyal, the PKR gained 60 paisas for both buying and selling, closing at 55.60 and 56.10, respectively.
Open-market rates for dollar on Monday
BID Rs 208
OFFER Rs 210