Inter-bank: rupee sees marginal decline against US dollar

The Pakistani rupee recorded a marginal fall against the US dollar to settle at 305.64 on Monday.

At close, the rupee was down Re0.17 or 0.06%, as per the State Bank of Pakistan (SBP).

During the previous week, the rupee depreciated 1.46% in the inter-bank market, closing at 305.47 against the US dollar on Friday but, more worryingly, the gap with open-market rates continued to widen.

In a key development, Chief of Army Staff General Asim Munir met prominent business people on Sunday. General Asim Munir highlighted the pivotal role of the Special Investment Facilitation Council (SIFC), emphasising its potential to attract substantial investments of up to 100 billion dollars from countries such as Saudi Arabia, the UAE, Kuwait, and others.

To bolster economic decision-making, he revealed the formation of task forces focused on economic matters and different sectors.

Globally, the US dollar started Monday on a steady footing as investors assessed US jobs data that showed some signs of cooling and bolstered expectations that the Federal Reserve was likely at the end of its monetary tightening cycle.

Data on Friday showed US job growth picked up in August, but the unemployment rate jumped to 3.8%, while wage gains moderated. The economy created 110,000 fewer jobs than previously reported in June and July.

Against a basket of currencies, the dollar was little changed at 104.20 but remained close to the two-month peak of 104.44 it touched on Aug. 25. The index rose 1.7% in August, snapping its two month losing streak. US markets are closed on Monday.

Oil prices, a key indicator of currency parity, were stable on Monday amid expectations that major producers would keep supplies tight, as hopes grew for the Federal Reserve to leave interest rates unchanged to avoid dampening the US economy.

Inter-bank market rates for dollar on Monday

BID                            Rs 305.60

OFFER                      Rs 305.80

Open-market movement

In the open market, the PKR remained unchanged for both buying and selling against USD, closing at 325.00 and 328.00, respectively.

Against Euro, the PKR lost 4.00 rupees for both buying and selling, closing at 354.00 and 357.00, respectively.

Against UAE Dirham, the PKR lost 1.30 rupee for both buying and selling, closing at 91.00 and 91.80, respectively.

Against Saudi Riyal, the PKR remained unchanged for both buying and selling, closing at 87.20 and 88.00, respectively.

Open-market rates for dollar on Monday

BID                            Rs 325.00

OFFER                      Rs 328.00