Markets

Inter-bank market: rupee settles below 300 against US dollar

  • Currency closes at 299.89 after appreciation of 0.42%
  • This is the rupee's fifth successive gain in inter-bank market
Published September 12, 2023

The Pakistani rupee continued to march upwards against the US dollar, appreciating for the fifth consecutive session to settle at 299.89 in the inter-bank market on Tuesday.

At close, the rupee was up Rs1.27 or 0.42%, as per the State Bank of Pakistan (SBP). Cumulatively, the rupee has appreciated over 2% in the last five sessions after it hit a record low of 307.1 last week. Its increase in the open market, however, has been much more pronounced.

On Monday, the rupee had strengthened 0.59% to settle at 301.16 in the inter-bank market.

In a related development, inflows of home remittances posted a decline of 22% during the first two months of this fiscal year (FY24), the SBP reported on Monday.

According to the SBP, Pakistan received workers’ remittances amounting to $4.12 billion in July-Aug of FY24 compared to $ 5.25 billion in the same period of last fiscal year (FY23), a massive decline of 21.6 percent or $1.13 billion.

Internationally, the US dollar regained some lost ground during trading on Tuesday.

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 US dollar index, which ended last week with an eight-week winning streak, rose 0.03% to 104.60, after falling 0.46% in the previous session. Sterling steadied at $1.2508.

Oil prices, a key indicator of currency parity, rose about 1% on Tuesday, boosted by a tighter supply outlook, while investors awaited macroeconomic data that could indicate whether interest rates will rise further in the United States and Europe.

Inter-bank market rates for dollar on Tuesday

BID                            Rs 298.90

OFFER                      Rs 299.10

Open-market movement

In the open market, the PKR remained unchanged for both buying and selling against USD, closing at 297.00 and 300.00, respectively.

Against Euro, the PKR gained 1.00 rupee for both buying and selling, closing at 321.00 and 324.00, respectively.

Against UAE Dirham, the PKR gained 10 paisa for buying and remained unchanged for selling, closing at 81.70 and 82.50, respectively.

Against Saudi Riyal, the PKR gained 50 paisa for both buying and selling, closing at 78.00 and 78.70, respectively.

Open-market rates for dollar on Tuesday

BID                            Rs 297.00

OFFER                      Rs 300.00

Comments

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Zubair Hameed Sep 12, 2023 11:39am
Remittance decline 21 percent, import bill rising, no imminent increase in exports in sight, no foreign investment or loan in pipeline... All of these cause country's USD reserves will continue to decrease unless a change in supply factors happens! Still strengthening of local currency is strange.. I wish and hope our currency keeps on strengthening but without increase in supply of USD this looks unsustainable.
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Ali Asghar Sep 12, 2023 04:26pm
I Think, Pakistan is only country in the world where stock market & currency market is being run on sentiments.
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Khan Sep 12, 2023 04:57pm
@Zubair Hameed , Efforts for increase in supply of US Dollar are being carried out through controlling of its illegal movement.
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John Sep 12, 2023 06:17pm
All artificial stimulations not based on the principals of international economics and finance will end up in dust! Hold fair elections, and let people decide, political stability (minus generals) will establish economic stability! Period!
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JK Sep 12, 2023 06:47pm
@Ali Asghar, manipulations via power not economic principles...more like Satta!
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Usman Sep 12, 2023 06:48pm
@Zubair Hameed , its not starnge its those who were holding dollars are now selling it in the market.typical mindset of pakistanis to make money.trade dollar.buy plots and beg.
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JK Sep 12, 2023 07:06pm
@Ali Asghar, Not sentiments...but Khakhi Sticks
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Builder Sep 13, 2023 01:05pm
@Usman, well said. We are probably the only country where people prefer to make money via hoarding/stocking (property and auto included) and smuggling instead of investing in industry and businesses.
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