New low in inter-bank: rupee settles at 303.05 against US dollar

The Pakistani rupee dropped to yet another record low against the US dollar, as it settled at 303.05 in the inter-bank market on Tuesday.

At close, the rupee was down Rs1.05 or 0.35%, as per the State Bank of Pakistan (SBP).

On Monday, the rupee had closed at the then-record low of 302 against the US dollar.

Despite securing a last-minute deal with the International Monetary Fund (IMF), the local currency has come under renewed pressure amid falling foreign exchange inflows, while concerns have risen over a widening current account deficit after authorities lifted curbs on imports.

Internationally, the US dollar was tentative on Tuesday as traders resisted placing large bets ahead of a slew of economic data this week, while the yen struggled near levels that triggered intervention last year.

That view gained more traction in the wake of Fed Chairman Jerome Powell on Friday suggesting that further rate increases may be needed to cool still-too-high inflation, though his promise to move with care at upcoming meetings provided for some uncertainty.

The dollar index, which measures US currency against six key rivals, eased 0.077% at 103.85, after slipping 0.2% on Monday. The index is up 2% this month as resilient economic data bolstered expectations that interest rates may stay higher for longer.

Oil prices, a key indicator of currency parity, were little changed on Tuesday as investors weighed the enduring possibility of another US interest rate hike undercutting demand against supply concerns emanating from a hurricane hurtling towards the US gulf coast.

Inter-bank market rates for dollar on Tuesday

BID                            Rs 303.00

OFFER                      Rs 303.20

Open-market movement

In the open market, the PKR lost 3.00 rupees for both buying and selling against USD, closing at 315.00 and 318.00, respectively.

Against Euro, the PKR lost 2.00 rupees for both buying and selling, closing at 342.00 and 345.00, respectively.

Against UAE Dirham, the PKR lost 50 paisa for both buying and selling, closing at 87.20 and 88.00, respectively.

Against Saudi Riyal, the PKR lost 70 paisa for both buying and selling, closing at 84.70 and 85.50, respectively.

Open-market rates for dollar on Tuesday

BID                            Rs 315.00

OFFER                      Rs 318.00