Rupee remains stable at 223.95 against US dollar

Pakistan’s rupee remained unchanged against the US dollar during the trading session on Tuesday.

As per the State Bank of Pakistan (SBP), the rupee closed at 223.95.

Rupee largely stable, settles at 223.95 against US dollar

On Monday, the rupee had registered a marginal drop against the US dollar to settle at 223.95 after a decrease of Re0.01.

In a key development, Pakistan and the International Monetary Fund (IMF) have started virtual discussions for the ninth review under the Extended Fund Facility (EFF) programme.

This was confirmed by Esther Perez Ruiz, IMF’s resident representative in Pakistan, in a response to Business Recorder.

The IMF’s board approved the seventh and eight reviews in August, allowing the release of more than $1.1 billion to Pakistan. The ninth review has been pending since September.

The approval of the ninth review is crucial for cash-strapped Pakistan facing depleting foreign exchange reserves. The country’s reserves stood at $7.8 billion as of November 18, barely enough to cover imports for a month.

Globally, the dollar held its overnight gains on Tuesday as concerns about unrest in China over COVID-19 restrictions dampened market sentiment, and as hawkish remarks from Federal Reserve officials gave the greenback an additional leg up.

The US central bank is widely expected to hike rates by an additional 50 basis points when it meets on December 13-14.

Against a basket of currencies, the US dollar index was marginally lower by 0.1% at 106.50, after rising 0.5% overnight.

Oil prices, a key indicator of currency parity, jumped on Tuesday, buoyed by hopes that China would relax its COVID-19 controls after rare protests against the country’s zero-COVID strategy over the weekend in big Chinese cities.

Inter-bank market rates for dollar on Tuesday

BID Rs 224

OFFER Rs 225

Open-market movement

In the open market, the PKR remained unchanged for both buying and selling against USD, closing at 228.75 and 231, respectively.

Against Euro, the PKR gained 50 paisas for both buying and selling, closing at 246.50 and 248.50 respectively.

Against UAE Dirham, the PKR remained unchanged for buying while gaining 10 paisas for selling, closing at 65.70 and 66.20, respectively.

Against Saudi Riyal, the PKR gained 30 paisas for both buying and selling, closing at 63.40 and 63.90, respectively.

Open-market rates for dollar on Tuesday

BID Rs 228.75

OFFER Rs 231