Rupee makes minor gain, settles at 285.35 against US dollar

The Pakistani rupee registered a marginal improvement against the US dollar, appreciating 0.02% in the inter-bank market on Tuesday.

At close, the currency settled at 285.35, an increase of Re0.07, as per the State Bank of Pakistan (SBP).

However, in the open market, the US dollar was being traded in the range of 311-314 level against the greenback, as the gap widened due to foreign currency shortage.

On Monday, the rupee registered losses to settle at 285.42 or 0.09% lower against the US dollar in the inter-bank.

In a key development, Nathan Porter, International Monetary Fund (IMF) Mission Chief to Pakistan, told Business Recorder that the multilateral lender continues its engagement with the Pakistani authorities - focusing on the restoration of foreign exchange proper market functioning, the passage of a fiscal year 2024 budget consistent with program goals, and adequate financing to pave the way for a Board meeting before the current program expires at June-end.

Porter said that overcoming the present economic and financial challenges would require sustained policy efforts and reforms for Pakistan to regain strong and inclusive private-led growth.

Globally, the US dollar fell on Tuesday against a basket of major currencies but did not drift far from a two-month peak, after a deal over the US debt ceiling lifted risk sentiment, although the agreement could face a rocky path through Congress.

The dollar index, which measures the US currency against six major peers, slipped 0.125% to 104.17, easing away from the two-month high of 104.42 it touched on Friday. The index is set to end the month with a gain of 2.5%.

A handful of hard-right Republican lawmakers said on Monday they would oppose a deal to raise the United States’ $31.4 trillion debt ceiling.

Oil prices, a key indicator of currency parity, fell by nearly 2% on Tuesday as concerns about the US debt ceiling pact cooled the market’s risk-on sentiment and mixed messages from major producers clouded the supply outlook ahead of their meeting this weekend.

Inter-bank market rates for dollar on Tuesday

BID Rs 285.35

OFFER Rs 285.45

Open-market movement

In the open market, the PKR lost 1 rupee for both buying and selling against USD, closing at 309.00 and 312.00, respectively.

Against Euro, the PKR gained 1 rupee for both buying and selling, closing at 330 and 333 respectively.

Against UAE Dirham, the PKR remained unchanged for both buying and selling, closing at 85.00 and 85.80, respectively.

Against Saudi Riyal, the PKR remained unchanged for both buying and selling, closing at 83.00 and 83.80, respectively.

Open-market rates for dollar on Tuesday

BID Rs 309.00

OFFER Rs 312.00