Rupee remains largely stable, settles at 287.26 against US dollar

The Pakistani rupee saw a marginal loss against the US dollar with a depreciation of 0.02% in the inter-bank market on Monday.

At close, the currency settled at 287.26, a decline of Re0.07, as per the State Bank of Pakistan (SBP).

On Friday, the rupee had remained largely stable in the inter-bank market, depreciating 0.08% to settle at 287.19.

Pakistan also reported having received $1 billion from China, after having repaid the amount earlier, amid looming concerns over the country’s debt obligations.

Last week, there was considerable activity on the International Monetary Fund (IMF) front, as the lender first stated it was dissatisfied with the budget proposals announced by Finance Minister Ishaq Dar. It was followed by a tit-for-tat response by the Finance Division that looked to justify its measures. However, it also categorically stated that it is looking to reach an amicable solution and complete “at least the ninth review”.

Experts say a revival of the IMF programme may lend some support but will still fall short of Pakistan’s bulging requirements.

Internationally, the US dollar was tentative on Monday as investors tried to assess the monetary policy path ahead after a raft of central bank meetings last week, while the yen was fragile in the wake of the Bank of Japan sticking to its ultra-easy policy.

In an action-packed week of central bank decisions, the Federal Reserve left interest rates unchanged on Wednesday but hinted that further hikes were on the way to tame inflation.

The dollar index, which measures the US currency against six major rivals, rose 0.049% to 102.33, not far from a one-month low of 102 it touched on Friday.

Oil prices, a key indicator of currency parity, fell on Monday as questions over China’s economy outweighed OPEC+ output cuts and the seventh straight drop in the number of oil and gas rigs operating in the United States.

Inter-bank market rates for dollar on Monday

BID Rs 287.20

OFFER Rs 287.30

Open-market movement

In the open market, the PKR gained 3 rupees for both buying and selling against USD, closing at 291.00 and 294.00, respectively.

Against Euro, the PKR gained 2 rupees for both buying and selling, closing at 315.00 and 318.00 respectively.

Against UAE Dirham, the PKR gained 60 paisa for buying and 70 paisa for selling, closing at 80.30 and 81.00, respectively.

Against Saudi Riyal, the PKR remained unchanged for both buying and selling, closing at 77.50 and 78.25, respectively.

Open-market rates for dollar on Monday

BID Rs 291.00

OFFER Rs 294.00