Rupee registers decline, settles at 262.51 against US dollar
- Currency records depreciation of 0.24% in inter-bank market
The Pakistani rupee’s five-session appreciation run came to an end on Tuesday, as the currency settled with a marginal decline of 0.24% against the US dollar in the inter-bank market.
As per the State Bank of Pakistan (SBP), the currency closed at 262.51 against the US dollar, a fall of Re0.63. The currency has depreciated 21.6% during the ongoing fiscal year against the greenback.
The Pakistani rupee had continued its upward momentum against the US dollar on Monday, settling at 261.88 an appreciation of Re0.94 or 0.36%.
In a key development, the National Assembly on Monday passed the Finance (Supplementary) Bill, 2023, proposing additional taxes and duties of Rs170 billion to meet the understanding reached with the International Monetary Fund (IMF) for its Extended Fund Facility.
In his winding-up speech, Finance Minister Ishaq Dar said his economic team held talks with the IMF to revive the programme, during which it agreed to take some tough decisions for streamlining the deteriorating condition of the economy.
Internationally, the US dollar was parked below recent peaks on Tuesday, as a three-week rally faded and traders waited on economic data to figure on whether it’s warranted to push the dollar up any further.
Strong US labour data and sticky inflation have raised U.S. rate expectations and supported the dollar’s rally so far this month - Tuesday’s European and U.S. manufacturing data and Friday’s core PCE price index will guide the next steps.
The US dollar index has climbed three weeks in a row for a gain of about 1.7% through February so far, but has steadied at 103.86, down from a six-week high of 104.67 hit on Friday.
The Brent crude benchmark fell on Tuesday as fears that a global economic slowdown would reduce fuel demand prompted investors to take profits on the previous day’s gains.
Inter-bank market rates for dollar on Tuesday
BID Rs 262.50
OFFER Rs 264.50
In the open market, the PKR lost 1.25 rupee for buying and selling against USD, closing at 266.00 and 269.00, respectively.
Against Euro, the PKR lost 50 paisa for buying and selling, closing at 279.00 and 282.00 respectively.
Against UAE Dirham, the PKR lost 20 paisa for buying and selling, closing at 73.00 and 73.70, respectively.
Against Saudi Riyal, the PKR lost 70 paisa for buying and 60 paisa for selling, closing at 70.70 and 71.30, respectively.
Open-market rates for dollar on Tuesday
BID Rs 266
OFFER Rs 269