Rupee records marginal loss, settles at 286.64 against US dollar

After back-to-back gains, the Pakistani rupee registered a marginal decline against the US dollar as it depreciated 0.07% on Monday.

At close, the rupee settled at 286.64, a decrease of Re0.19, as per the State Bank of Pakistan (SBP).

During the previous week, the rupee registered a marginal appreciation of 0.13%, which consisted of four trading sessions, to close at 286.45 against the US dollar.

While the week-on-week change was marginal, the rupee endured a fall close to the 289 level before strengthening to close with back-to-back gains.

The reversal came after the central bank’s decision to allow Exchange Companies (ECs) to import US dollars in cash against the value of their export consignments of permissible foreign currencies within five working days, through reputed cargo or security companies.

Internationally, the US dollar was headed for a monthly loss on the prospect that the Federal Reserve’s aggressive rate-hike cycle - a key driver of the dollar’s strength - could have concluded with last week’s 25-basis-point increase.

Data on Friday showed that the annual US inflation rate rose at its slowest pace in more than two years in June, with underlying price pressure receding, easing pressure on the Federal Open Market Committee (FOMC) to continue raising rates.

Oil prices, a key indicator of currency parity, were set to post their biggest monthly gains in more than a year on Monday, on expectations that Saudi Arabia will extend voluntary output cuts into September and tighten global supply.

Inter-bank market rates for dollar on Monday

BID Rs 286.60

OFFER Rs 286.80

Open-market movement

In the open market, the PKR remained unchanged for both buying and selling against USD, closing at 288.00 and 291.00, respectively.

Against Euro, the PKR lost 1.00 rupee for both buying and selling, closing at 318.00 and 321.00, respectively.

Against UAE Dirham, the PKR remained unchanged for both buying and selling, closing at 80.20 and 81.00, respectively.

Against Saudi Riyal, the PKR gained 30 paisa for buying and 20 paisa for selling, closing at 76.70 and 77.50, respectively.

Open-market rates for dollar on Monday

BID Rs 288.00

OFFER Rs 291.00