Rupee sees minor gain, settles at 287.22 against US dollar

The Pakistani rupee witnessed a marginal increase against the US dollar with an appreciation of 0.01% in the inter-bank market on Tuesday.

At close, the currency settled at 287.22, an improvement of Re0.04, as per the State Bank of Pakistan (SBP).

On Monday, the rupee saw a marginal loss in the inter-bank market, depreciating 0.02% to settle at 287.26.

In a key development, it was learnt that Pakistan is not on the agenda of the International Monetary Fund (IMF) Executive Board meetings scheduled till June 29, as the 9th review under the Extended Fund Facility (EFF) programme remains pending.

Separately, the country’s current account deficit fell sharply, i.e. 81% during the first 11 months of the current fiscal year (FY23) supported by lower import bill.

According to the SBP, Pakistan posted a $2.94 billion current account deficit during July-May of FY23 compared to $15.16 billion in the same period of last fiscal year (FY22), depicting a decline of $12.2 billion.

In other currencies, the yen slumped to a seven-month low of 142.26 per dollar, extending its decline following the Bank of Japan’s (BOJ) decision on Friday to maintain its ultra-easy monetary policy.

The euro rose marginally to $1.0923, drawing support from a still-hawkish European Central Bank after two policymakers on Monday said the bank should err on the side of further rate hikes as the inflation rate could come in even higher than it expects.

The US dollar index, which measures it against a basket of currencies, rose broadly to trade at 102.51, up 0.03%.

Oil prices, a key indicator of currency parity, slipped on Tuesday after China cut benchmark lending rates less than some expected while demand was seen rising this year, clouding the outlook for the world’s largest crude importer.

Inter-bank market rates for dollar on Tuesday

BID Rs 287.20

OFFER Rs 287.40

Open-market movement

In the open market, the PKR gained 2 rupees for both buying and selling against USD, closing at 289.00 and 292.00, respectively.

Against Euro, the PKR gained 4 rupees for buying and 3 rupees for selling, closing at 311.00 and 315.00 respectively.

Against UAE Dirham, the PKR lost 20 paisa for buying and 30 paisa for selling, closing at 80.50 and 81.30, respectively.

Against Saudi Riyal, the PKR gained 1 rupee for both buying and selling, closing at 76.50 and 77.25, respectively.

Open-market rates for dollar on Tuesday

BID Rs 289.00

OFFER Rs 292.00