Rupee ends winning streak, settles at 284.71 against US dollar

The Pakistani rupee ended its three-session winning streak against the US dollar as the currency depreciated 0.11% in the inter-bank market on Monday.

According to the State Bank of Pakistan (SBP), the local currency settled at 284.71, a decrease of Re0.31.

During the previous week, the rupee had depreciated a marginal 0.09% against the US dollar on account of recovery on the last three days.

News of a $2-billion inflow from Saudi Arabia and another $1 billion from the UAE had helped market sentiment with the rupee settling at 284.4 on Friday. These assurances of funds from friendly countries were seen as crucial for the revival of the International Monetary Fund (IMF) bailout programme.

However, on Saturday, the IMF said it is still looking forward to obtaining more necessary financing assurances as soon as possible to pave the way for the successful completion of the 9th Extended Fund Facility (EFF) review. Its statement implied that the staff-level agreement could still be a few steps away.

The agreement is critical to providing much-needed stability to the currency market that has seen the rupee undergo volatile rides in recent months.

Meanwhile, internationally, the US dollar bounced from a one-year low on Monday as resilience in core US retail sales, a rise in short-term inflation expectations and impressive Wall Street bank earnings raised market expectations for an interest rate hike in May.

While US retail sales fell more than expected in March, the so-called core retail sales, which excludes automobiles, gasoline, building materials and food services, slipped just 0.3% last month, data released on Friday showed.

Against a basket of currencies, the US dollar index rose 0.15% to 101.82, standing some distance away from Friday’s one-year low of 100.78.

Oil prices, a key indicator of currency parity, were steady on Monday as investors eyed Chinese economic data for signs of demand recovery in the world’s second-largest oil consumer.

Inter-bank market rates for dollar on Monday

BID Rs 284.70

OFFER Rs 287.00

Open-market movement

In the open market, the PKR gained 1 rupee for both buying and selling against USD, closing at 286 and 289, respectively.

Against Euro, the PKR gained 4 rupees for both buying and selling, closing at 310 and 313 respectively.

Against UAE Dirham, the PKR gained 1 rupee for both buying and selling, closing at 77.30 and 78.00, respectively.

Against Saudi Riyal, the PKR gained 50 paisa for both buying and selling, closing at 75.50 and 76.20, respectively.

Open-market rates for dollar on Monday

BID Rs 286

OFFER Rs 289