Rupee little changed, settles at 284.96 against US dollar

The Pakistani rupee saw little change against the US dollar, appreciating 0.004% in the inter-bank market on Tuesday.

At close, the rupee finished with an increase of Re0.01 to settle at 284.96 against the US dollar.

The slight improvement comes after the rupee remained largely stable against the US dollar on Monday as well, closing at 284.97 against the US dollar in the inter-bank market.

In a key development, the Large Scale Manufacturing Industry (LSMI) output has declined by 8.11% during July-March 2022-23 when compared with the same period of last year, says Pakistan Bureau of Statistics (PBS).

Separately, inflows of Roshan Digital Account (RDA) crossed $6 billion mark for the first time since its launching.

According to the State Bank of Pakistan (SBP), cumulatively, RDA inflows rose by $136 million during April 2023. Since its launch, overall investment in the RDA rose to $6.102 billion at the end of April 2023 compared to $ 5.966 billion in March 2023.

Globally, the US dollar remained under pressure on Tuesday, weighed down by the risk of a US default as a standoff between Democrats and Republicans over raising the debt ceiling showed few signs of being resolved.

The dollar had been buoyed last week by both safe-haven demand amid weak Chinese economic data and by a surprise jump in US consumer inflation expectations, putting the risk of a June Federal Reserve rate rise back in play.

The US dollar index - which measures the currency against a basket of six major peers - was little changed at 102.46, after sliding 0.26% overnight and retreating from a five-week high.

Oil prices, a key indicator of currency parity, traded sideways on Tuesday, after mostly weaker-than-expected data from China muddied the outlook for demand from the world’s top crude importer while US plans to refill its Strategic Petroleum Reserve (SPR) underpinned prices.

Inter-bank market rates for dollar on Tuesday

BID Rs 284.90

OFFER Rs 286.90

Open-market movement

In the open market, the PKR lost 2 rupees for both buying and selling against USD, closing at 290 and 293, respectively.

Against Euro, the PKR lost 2 rupees for both buying and selling, closing at 316 and 319 respectively.

Against UAE Dirham, the PKR lost 50 paisa for buying and 60 paisa for selling, closing at 80.20 and 81.00, respectively.

Against Saudi Riyal, the PKR lost 50 paisa for buying and 55 paisa for selling, closing at 78.00 and 78.75, respectively.

Open-market rates for dollar on Tuesday

BID Rs 290

OFFER Rs 293