- Currency depreciates 0.18% on Monday
The Pakistani rupee registered losses for the second straight session against the US dollar, depreciating 0.18% in the inter-bank market on Monday.
At close, the currency settled at 286.19, a decline of Re0.51, as per the State Bank of Pakistan (SBP).
In the open-market, the PKR was again at the receiving end against the US dollar.
Open-market dealers Business Recorder reached out to quoted rates in the range of 305-310 on Monday evening.
During the previous week, the rupee had depreciated marginally by 0.19% against the US dollar in the inter-bank market, settling at 285.68 on Friday, but it was the currency movement in the open market that caught attention.
Last week, the SBP said it allowed authorised dealers of foreign exchange to purchase the US dollar from the inter-bank market for settlement of card-based cross-border transactions with international payment schemes such as Visa and MasterCard.
The reaction to the development was a lowering of the US dollar rate in the open market the following day, but dealers Business Recorder reached out to said the foreign currency remained in scant supply, rendering the gain of nearly Rs20 rather meaningless.
Globally, the US dollar firmed against major peers in Asian trading after a robust US jobs report spurred traders to price in higher interest rates for longer.
The US dollar garnered support from higher Treasury yields after data on Friday showed payrolls in the public and private sector increased by 339,000 in May, far outstripping the 190,000 forecast on average by economists polled by Reuters.
While headline US jobs growth was much stronger than expected in May, wage pressures eased and the unemployment rate climbed off a 53-year low, potentially giving the Federal Reserve scope to pause their rate hiking campaign at the upcoming June 13-14 meeting, as some officials had voiced a preference for doing last week.
Oil prices, a key indicator of currency parity, rose by more than $1 a barrel on Monday after top crude exporter Saudi Arabia pledged to cut production by a further 1 million barrels per day (bpd) from July to counter macroeconomic headwinds that have depressed markets.
Inter-bank market rates for dollar on Monday
BID Rs 286.10
OFFER Rs 286.20
In the open market, the PKR lost 8 rupees for both buying and selling against USD, closing at 305.00 and 308.00, respectively.
Against Euro, the PKR gained 50 paisa for buying and remained unchanged for selling, closing at 321.50 and 325.00 respectively.
Against UAE Dirham, the PKR lost 1.70 rupee for both buying and selling, closing at 83.20 and 84.00, respectively.
Against Saudi Riyal, the PKR lost 2.20 rupees for buying and 2.25 rupees for selling, closing at 80.70 and 81.50, respectively.
Open-market rates for dollar on Monday
BID Rs 305.00
OFFER Rs 308.00