Rupee records marginal gain, settles at 220.65 against US dollar

Pakistan’s rupee registered back-to-back gains against the US dollar, and settled with a marginal appreciation of 0.11% in the inter-bank on Tuesday, even as the greenback strengthened against other currencies.

As per the State Bank of Pakistan (SBP), the rupee closed at 220.65 after an appreciation of Re0.24.

On Monday, Pakistan’s rupee had ended its three-session depreciation run against the US dollar, and settled at 220.89 after an appreciation of Rs1.58 or 0.72%. In October, rupee gained Rs7.56 or 3.3% against the US dollar.

The improvement comes following the finance minister’s meetings with key stakeholders, assuring ample liquidity in the market, experts say.

On Monday, Finance Minister Ishaq Dar in a video message made a number of key announcements.

The government announced to keep the price of petroleum products unchanged for the next 15 days, while the deadline to file income tax returns was extended to November 30.

Moreover, Dar also said that the government, after a discussion with the State Bank of Pakistan (SBP), will clear the pending letters of credit (LCs) with the limit from November 1 being enhanced to $100,000 from the current $50,000.

Internationally, the US dollar sank from a one-week high against a basket of major peers on Tuesday as the mood in financial markets brightened ahead of key Federal Reserve and Bank of England (BoE) meetings this week.

The US dollar index - which measures the greenback against six rivals including the euro, sterling and yen - sagged 0.48% to 111.02 on Tuesday. That ate away some of the 0.79% gains it made on Monday.

The index has fluctuated widely around the 112 level since its retreat from a two-decade high of 114.78 at the end of September.

Oil prices, a key indicator of currency parity, rose on Tuesday, recouping losses from the previous session, as a weaker US dollar offset widening COVID-19 curbs in China that have stoked fears of slowing fuel demand in the world’s second-largest oil consumer.

Inter-bank market rates for dollar on Tuesday

BID Rs 220.70

OFFER Rs 221.70

Open-market movement

In the open market, the PKR gained 50 paisas for both buying and selling against USD, closing at 224.50 and 226.50, respectively.

Against Euro, the PKR lost one rupee for buying and 75 paisas for selling, closing at 230 and 232 respectively.

Against UAE Dirham, the PKR gained 50 paisas for both buying and selling, closing at 65 and 65.50, respectively.

Against Saudi Riyal, the PKR lost 80 paisas for buying and 70 paisas for selling, closing at 62.30 and 62.80, respectively.

Open-market rates for dollar on Tuesday

BID Rs 224.50

OFFER Rs 226.50