Rupee strengthens marginally, settles at 277.04 against US dollar

The Pakistani rupee registered marginal appreciation against the US dollar, strengthening 0.13% in the inter-bank market on Thursday.

At close, the currency settled at 277.04, an increase of Re0.37, as per the State Bank of Pakistan (SBP).

On Wednesday, the Pakistani rupee sustained losses against the US dollar, depreciating 0.71% in the inter-bank market to settle at 277.41.

In a key development, the International Monetary Fund (IMF) Executive Board meeting on Pakistan has been set for July 12, the lender confirmed to journalists via email on Wednesday night.

The Fund is set to discuss a nine-month Stand-by Arrangement (SBA) for Pakistan as the previous Extended Fund Facility (EFF) expired on June 30.

On June 30, IMF announced that its staff and Pakistani authorities reached an agreement on policies to be supported by a $3-billion, nine-month SBA.

The IMF programme is crucial for the country facing a balance of payment crisis. Experts say the programme resumption would also pave the way for funding from multilateral and bilateral institutions.

Globally, the US dollar was broadly higher on Thursday, after the release of minutes from the Federal Reserve’s latest policy meeting cemented market expectations for a rate hike this month.

Minutes of the Fed’s June meeting released on Wednesday showed that the vast majority of policymakers expect further tightening in U.S. monetary policy, even as they agreed to hold interest rates steady last month.

The dollar index rose 0.04% to 103.38.

Oil prices, a key indicator of currency parity, were little changed on Thursday as the market digested tighter crude supply alongside fears of global economic slowdown.

Inter-bank market rates for dollar on Thursday

BID Rs 276.30

OFFER Rs 276.50

Open-market movement

In the open market, the PKR gained 1.00 rupee for both buying and selling against USD, closing at 277.00 and 280.00, respectively.

Against Euro, the PKR lost 1.50 rupee for buying and 2.00 rupee for selling, closing at 298.50 and 302.00 respectively.

Against UAE Dirham, the PKR remained unchanged for both buying and selling, closing at 75.00 and 75.70, respectively.

Against Saudi Riyal, the PKR remained unchanged for both buying and selling, closing at 73.00 and 73.70, respectively.

Open-market rates for dollar on Thursday

BID Rs 277.00

OFFER Rs 280.00