- Currency depreciates 0.6% in inter-bank market
The Pakistani rupee sustained back-to-back losses against the US dollar, depreciating another 0.6% on Monday.
At close, the currency settled at 279.26, a decrease of Rs1.67, as per the State Bank of Pakistan (SBP).
During the previous week, the rupee settled with a marginal appreciation of 0.11% to end at 277.59 in the inter-bank market as euphoria over the International Monetary Fund (IMF) programme faded and made way for economic fundamentals.
Finance Minister Ishaq Dar said Pakistan received a cumulative inflow of around $4.2 billion, including the first tranche of the new SBA with the IMF.
Dar also confirmed deposits of $2 billion from Saudi Arabia and another $1 billion from the UAE. The inflows almost double the reserves held with the central bank, which were reported to be at $4.52 billion as of July 7. The fresh inflows will be reflected in the reserves data for July 14.
Globally, a bruised US dollar took respite on Monday after suffering its worst weekly drop of the year, as traders waited on economic data and policy decisions before selling it down any further.
Last week’s dollar slide began with yen buying, as investors unwound yen-funded positions in emerging markets, but extended sharply after softer-than-expected U.S. inflation data leant support to wagers that U.S. interest rates will soon peak.
Hikes are expected from the Federal Reserve and European Central Bank next week, but beyond that market pricing implies the Fed will likely stop, before cuts next year, while in Europe another hike probably beckons.
The US dollar index dropped 2.2% last week, its sharpest one-week fall since November, and was steady at 99.936 in the Asia session.
Oil prices, a key indicator of currency parity, dropped by more than 1% on Monday after weaker-than-expected Chinese economic growth fuelled concern over demand in the world’s second-biggest oil consumer while a partial restart of halted Libyan output also pressured.
Inter-bank market rates for dollar on Monday
BID Rs 279.10
OFFER Rs 279.30
In the open market, the PKR lost 2.00 rupees for both buying and selling, against USD, closing at 283.00 and 286.00, respectively.
Against Euro, the PKR lost 1.00 rupee for both buying and selling, closing at 312.00 and 315.00 respectively.
Against UAE Dirham, the PKR lost 70 paisa for buying and 75 paisa for selling, closing at 77.50 and 78.25, respectively.
Against Saudi Riyal, the PKR lost 60 paisa for buying and 50 paisa for selling, closing at 74.30 and 75.00, respectively.
Open-market rates for dollar on Monday
BID Rs 283.00
OFFER Rs 286.00