Rupee remains under pressure, settles at 224.11 against US dollar

Pakistan’s rupee registered losses against the US dollar on Tuesday, as the currency recorded a depreciation of 0.09% in the inter-bank market.

As per the State Bank of Pakistan (SBP), the rupee closed at 224.11 after a decrease of Re0.20. The rupee has depreciated by 21.24% against the US dollar during the ongoing calendar year.

On Monday, the rupee had sustained minor losses against the US dollar to settle at 223.91 after a decrease of Re0.22 or 0.10%.

In a key development, Minister of State for Petroleum Musaddik Malik announced on Monday that his recent visit to Russia was successful as the energy giant agreed to supply both crude and refined petrol, diesel, and LNG at discounted rates, especially when the world was witnessing a shortage and high premier on diesel.

The development is positive for a net oil-importing country like Pakistan, which faces dwindling foreign exchange reserves and debt burden.

Globally, the US dollar held firm against major peers on Tuesday, following its biggest rally in two weeks after strong services data in the United States fuelled bets the Federal Reserve may lift interest rates more than recently projected.

The US dollar index - which measures the currency against six major peers - changed hands at 105.11 in early Asian trading, easing 0.1% after Monday’s 0.7% rally, its biggest since November 21.

It had dipped to 104.1 for the first time since June 28 as traders continued to rein in bets of aggressive Fed tightening.

Oil prices, a key indicator of currency parity, rebounded on Tuesday after plunging by more than 3% in the previous session, as the implementation of sanctions on Russian seaborne crude oil eased concerns about oversupply while the relaxing of China’s COVID curbs bolstered the demand outlook.

The price cap, to be enforced by the G7 nations, the European Union and Australia, comes on top of the EU’s embargo on imports of Russian crude by sea and similar pledges by the United States, Canada, Japan and Britain.

Inter-bank market rates for dollar on Tuesday

BID Rs 224.20

OFFER Rs 225.20

Open-market movement

In the open market, the PKR remained unchanged for both buying and selling against USD, closing at 229.25 and 231.50, respectively.

Against Euro, the PKR gained 1.50 rupees for both buying and selling, closing at 249.50 and 251.50 respectively.

Against UAE Dirham, the PKR remained unchanged for both buying and selling, closing at 65.50 and 66, respectively.

Against Saudi Riyal, the PKR gained 10 paisas for buying while remaining unchanged for selling, closing at 63.20 and 63.70, respectively.

Open-market rates for dollar on Tuesday

BID Rs 229.25

OFFER Rs 231.50