Inter-bank: rupee sustains further losses, settles at 307.1 against US dollar

The Pakistani rupee sustained back-to-back losses against the US dollar to settle at a new record low of 307.1 in the inter-bank on Tuesday.

At close, the rupee was down Rs1.46 or 0.48%, as per the State Bank of Pakistan (SBP).

On Monday, the rupee recorded a marginal fall against the US dollar to settle at 305.64 in the inter-bank market.

In a key development, Business Recorder learnt that the government has yet to finalise relief in soaring electricity bills to consumers as the International Monetary Fund (IMF) has conveyed its disagreement to the data provided by the federal government.

Internationally, the US dollar was firm on Tuesday and the Aussie under a little pressure as traders watched out for the Reserve Bank of Australia’s interest rate decision with bets that rates may have peaked.

Softer than expected inflation data for July has markets all but certain the cash rate will stay on hold at 4.1% when the RBA announces its decision in the next few hours, far lower than where US overnight rates are at about 5.25-5.5%.

Currency markets had been steady overnight, with volumes lightened by a US holiday and with little economic data to gauge whether global hiking cycles might also be at an end.

Oil prices, a key indicator of currency parity, dipped on Tuesday as fresh data added to gloom over the state of China’s post-pandemic recovery, although expectations of an extension in supply cuts by leading OPEC+ members limited losses.

Inter-bank market rates for dollar on Tuesday

BID Rs 307.00

OFFER Rs 307.20

Open-market movement

In the open market, the PKR gained 5.00 rupees for both buying and selling against USD, closing at 320.00 and 323.00, respectively.

Against Euro, the PKR gained 14.00 rupees for both buying and selling, closing at 340.00 and 343.50, respectively.

Against UAE Dirham, the PKR gained 3.00 rupees for both buying and selling, closing at 88.00 and 88.80, respectively.

Against Saudi Riyal, the PKR gained 2.00 rupees for both buying and selling, closing at 85.20 and 86.00, respectively.

Open-market rates for dollar on Tuesday

BID Rs 320.00

OFFER Rs 323.00