- Currency settles at 301.16, an appreciation of 0.59% in inter-bank market
The Pakistani rupee maintained an upward trend against the US dollar, appreciating for the fourth successive session to settle at 301.16 in the inter-bank market on Monday.
At close, the rupee was up Rs1.79 or 0.59%, as per the State Bank of Pakistan (SBP). Cumulatively, the rupee has appreciated nearly 2% in the last four sessions. Its increase in the open market, however, has been much more drastic.
During the previous week, the rupee appreciated 0.83% to settle at 302.95 against the US dollar in the inter-bank market, but there was much more to the story as its gap with the open market reduced massively while a reported crackdown on smuggling and speculation saw the currency reverse fortune after it hit a record low last Tuesday.
The move by the SBP to strengthen controls on Exchange Companies, and reports of the army chief’s intervention and deployment of law-enforcement personnel at currency dealer outlets saw the currency regain ground.
Internationally, the US dollar was on the back foot ahead of this week’s US inflation reading.
US inflation data for the month of August is due on Wednesday, with traders on the lookout for whether the world’s largest economy is indeed on track for a “soft landing”, and whether the Fed has further to go in raising rates.
The dollar, along with US Treasury yields, had surged last week after a run of resilient economic data added to bets that further rate hikes from the Fed may be on the horizon.
The dollar index, which capped last week with eight straight weeks of gains, its longest run since 2014, dipped slightly to 104.84.
Oil prices, a key indicator of currency parity, dipped on Monday after fresh Saudi and Russian crude output cuts had driven prices to 10-month highs last week. Saudi Arabia and Russia last week announced that they will extend voluntary supply cuts of a combined 1.3 million barrels per day (bpd) until the end of the year.
Inter-bank market rates for dollar on Monday
BID Rs 301.10
OFFER Rs 301.30
In the open market, the PKR gained 4.00 rupees for both buying and selling against USD, closing at 297.00 and 300.00, respectively.
Against Euro, the PKR remained unchanged for both buying and selling, closing at 322.00 and 325.00, respectively.
Against UAE Dirham, the PKR gained 2.70 rupee for buying and 2.80 rupee for selling, closing at 81.80 and 82.50, respectively.
Against Saudi Riyal, the PKR gained 1.50 rupee for buying and 1.60 rupee for selling, closing at 78.50 and 79.20, respectively.
Open-market rates for dollar on Monday
BID Rs 297.00
OFFER Rs 300.00