Rupee makes minor gain against US dollar, settles at 283.92

The Pakistani rupee registered a minor gain against the US dollar, appreciating 0.04% in the inter-bank market on Tuesday.

As per the State Bank of Pakistan (SBP), the rupee settled at 283.92, a gain of Re0.11.

A day earlier, the rupee had settled at 284.03 against the dollar in the inter-bank market, a decline of Re2.32 or 0.82%.

In a key development, International Monetary Fund (IMF) Resident Representative Esther Ruiz Perez said Pakistan authorities did not consult with the lender's staff ahead of announcing their recent fuel subsidy proposal.

"The IMF is seeking greater details on the scheme in terms of its operation, cost, targeting, protections against fraud and abuse, and offsetting measures, and will carefully discuss these elements with the authorities," Ruiz told Business Recorder via message early Tuesday morning.

The development potentially means the staff-level agreement could still take some time as Islamabad remains in talks with the IMF.

Internationally, the dollar regained some ground on Tuesday but was pinned near a five-week low as traders tiptoed back into riskier assets after UBS’ state-backed takeover of Credit Suisse allayed some fears of a widespread, systemic banking crisis.

Market sentiment remained fragile, however, as investors struggled to determine the scale of the ramifications from a sector hit that began with Silicon Valley Bank’s collapse, putting a cap on risk appetite and giving some support to the safe haven dollar.

The US dollar index, which measures the greenback against a basket of currencies, fell 0.04% to 103.30.

Oil prices, a key indicator, drifted lower on Tuesday as more than a week of banking turmoil kept weighing on market confidence.

Inter-bank market rates for dollar on Tuesday

BID Rs 283.90

OFFER Rs 285.40

Open-market movement

In the open market, the PKR gained 50 paisa for both buying and selling against USD, closing at 282.50 and 285.50, respectively.

Against Euro, the PKR lost 1 rupee for both buying and selling, closing at 301 and 304 respectively.

Against UAE Dirham, the PKR lost 10 paisa for both buying and selling, closing at 77.10 and 77.80, respectively.

Against Saudi Riyal, the PKR remained unchanged for both buying and selling, closing at 75.30 and 76.00, respectively.

Open-market rates for dollar on Tuesday

BID Rs 282.50

OFFER Rs 285.50