Rupee registers third successive gain, settles at 219.73 against US dollar

Pakistan’s rupee recorded a gain for the third successive session against the US dollar, and registered an appreciation of 0.31% in the inter-bank on Tuesday.

As per the State Bank of Pakistan (SBP), the rupee closed at 219.73 after appreciating Re0.68.

On Monday, Pakistan’s rupee had closed at 220.41 after appreciating Re0.43 or 0.20% in the inter-bank. In the last three sessions, the rupee has gained Rs1.22 or 0.56% against the greenback.

Experts say improvement in the currency’s performance is driven by a change in sentiment after Pakistan exited the Financial Action Task Force (FATF) grey list on Friday.

Business communities have hailed the decision and were of the view that Pakistan’s exclusion from the grey list will herald an era of economic stability and export boost.

Federation of Pakistan Chamber of Commerce and Industry’s (FPCCI) United Business Group (UBG) Chairman Shahzad Ali Malik stated as a result of FATF decision economic activities will be accelerated and help restore the confidence of investors.

In another key development, the government inked a $1.5-billion loan agreement with the Asian Development Bank (ADB) on Monday.

The multi-billion dollar loan will be utilised for budget support for Pakistan under the Building Resilience with Active Countercyclical Expenditures (BRACE) programme of the ADB.

Globally, the safe-haven US dollar eased against peers on Tuesday amid signs Federal Reserve rate hikes are already putting the brakes on the world’s biggest economy, while risk sentiment improved with Rishi Sunak about to become Britain’s prime minister.

The dollar index, which measures the currency against six major peers, eased to 111.78, taking it close to Friday’s low of 111.68, the weakest level since October 6.

Oil prices, a key determinant of currency parity, fell by more than $1 per barrel on Tuesday as bearish economic data from key global economies heightened demand fears.

Inter-bank market rates for dollar on Tuesday

BID Rs 219.80

OFFER Rs 220.80

Open-market movement

In the open market, the PKR gained 2 rupees for both buying and selling against USD, closing at 220.70 and 222.90, respectively.

Against Euro, the PKR remained unchanged for both buying and selling, closing at 218.50 and 220.65 respectively.

Against UAE Dirham, the PKR gained 60 paisas for both buying and selling, closing at 63.40 and 64, respectively.

Against Saudi Riyal, the PKR gained 55 paisas for buying and 60 paisas for selling, closing at 58.55 and 59.10, respectively.

Open-market rates for dollar on Tuesday

BID Rs 220.70

OFFER Rs 222.90

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