The Pakistani rupee maintained its positive momentum against the US dollar and appreciated 0.19% during the trading session on Monday.
As per the State Bank of Pakistan (SBP), the rupee settled at 277.92 against the greenback, an increase of Re0.54 in the inter-bank market. During the day, the rupee was up 1.26% before losing some steam.
During the previous week, the rupee had plummeted 6.63% against the US dollar, settling at 278.46 in the inter-bank market after a massive fall on Thursday saw the currency hit yet another record low before making a partial recovery on Friday.
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Reports that suggested an International Monetary Fund (IMF) bailout programme was still not on track made the markets jittery. Additionally, heavy import payments and a widening gap between the open and inter-bank markets again suggested artificial control on part of the authorities.
In a key development on Monday, IMF’s Resident Representative Esther Ruiz Perez said Pakistan will be required to give an assurance that its balance of payments deficit is fully financed for the remaining period of an IMF programme.
Internationally, the US dollar, made a tentative start to the week on Monday as investors awaited testimony from Federal Reserve Chair Jerome Powell this week and looked towards for a February jobs report that will likely influence how hawkish the US central bank will be.
The dollar index, which measures the US currency against six major peers, was down 0.057% at 104.560, but not far off a seven-week high of 105.36 it touched last week. The index last week clocked a weekly loss for the first time since January.
After delivering jumbo hikes last year, the Fed has raised interest rates by 25 basis points in its latest two meetings, but a slew of resilient economic data has stoked market fears that the central bank might return to its aggressive path.
Oil prices, a key indicator of currency parity, slipped on Monday after China set a lower-than-expected target for economic growth this year at around 5%, and as investors cautiously awaited US Federal Reserve Chair Jerome Powell’s testimony this week.
Inter-bank market rates for dollar on Monday
BID Rs 277.90
OFFER Rs 280.90
Open-market movement
In the open market, the PKR gained 3.50 rupees for both buying and selling against USD, closing at 276.00 and 279.00, respectively.
Against Euro, the PKR remained unchanged for both buying and selling, closing at 290.00 and 293.00 respectively.
Against UAE Dirham, the PKR gained 1 rupee for both buying and selling, closing at 75.50 and 76.20, respectively.
Against Saudi Riyal, the PKR gained 90 paisa for buying and 1 rupee for selling, closing at 73.30 and 74.00, respectively.
Open-market rates for dollar on Monday
BID Rs 276.00 OFFER Rs 279.00
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