3rd straight fall: rupee settles at 287.97 against US dollar

The Pakistani rupee witnessed losses for the third consecutive session against the US dollar, with a depreciation of 0.12% in the inter-bank market on Tuesday.

At close, the currency settled at 287.97, a decrease of Re0.34, as per the State Bank of Pakistan (SBP).

On Monday, the Pakistani rupee had recorded back-to-back losses against the US dollar to settle at 287.63, down by 0.24% against the US dollar in the inter-bank.

In a key development, State Bank of Pakistan (SBP) governor Jameel Ahmad on Monday said the country is not considering bilateral debt restructuring, sources that attended an analyst briefing following the monetary policy decision told Reuters.

“As of now there is no plan to enter into any debt restructuring,” the sources cited central bank governor Ahmad as saying.

“Absolutely no doubt about it. We are not considering any such plan, so there is no question of what will be the haircut,” he added.

Separately, Finance Minister Ishaq Dar apprised the Chinese official of the International Monetary Fund (IMF) ambivalence.

The resumption of the IMF programme, which remains stalled since November last year, is crucial for the cash-strapped country facing looming risks of default.

Globally, the US dollar edged broadly lower on Tuesday but traded in a narrow range, as investors remained cautious ahead of key US inflation data due later in the day just as the Federal Reserve kicks off its two-day monetary policy meeting.

The US Labor Department’s CPI report is expected to show that inflation cooled slightly in May, which could give the Fed room to pause its aggressive rate-hike cycle when it announces its interest rate decision on Wednesday.

Markets are currently pricing in an 80% chance that the Fed will keep rates on hold at this week’s meeting, according to the CME FedWatch tool.

The US dollar index edged marginally higher to 103.59, after falling to 103.24 on Monday, its lowest since May 23.

Oil prices, a key indicator of currency parity, ticked up on Tuesday on apparent bargain hunting, recovering some ground from the previous day’s plunge. But gains were limited as investors remained cautious ahead of key policy decisions by central banks and on weak economic data from China.

Inter-bank market rates for dollar on Tuesday

BID Rs 287.80

OFFER Rs 288.05

Open-market movement

In the open market, the PKR gained 7 rupees for both buying and selling against USD, closing at 295.00 and 298.00, respectively.

Against Euro, the PKR gained 2 rupees for both buying and selling, closing at 318.00 and 321.00 respectively.

Against UAE Dirham, the PKR gained 80 paisa for buying and 70 paisa for selling, closing at 82.00 and 82.80, respectively.

Against Saudi Riyal, the PKR gained 1.20 rupee for both buying and selling, closing at 78.30 and 79.00, respectively.

Open-market rates for dollar on Tuesday

BID Rs 295.00

OFFER Rs 298.00