9th consecutive gain: rupee settles at 295.95 against US dollar

The Pakistani rupee strengthened for the ninth consecutive session against the US dollar, appreciating 0.3% in the inter-bank market on Monday.

As per the State Bank of Pakistan (SBP), the rupee settled at 295.95 after an increase of Re0.9 in the inter-bank market.

During the previous week, the rupee appreciated nearly 2.1% across the five sessions to close at 296.85 against the US dollar in the inter-bank market.

The currency closed positive on all five days, extending its winning run to eight successive sessions as momentum continued to favour the rupee.

The change in fortune comes as authorities introduced reforms in the Exchange Companies’ sector and reportedly cracked down on smuggling, lending support to the currency markets.

Internationally, the US dollar and most major currencies were flatlining in early trades on Monday, barring a blip in sterling, as a Japanese holiday and a bunch of upcoming central bank meetings sucked the air out of markets.

Most investors expect divergences in economic growth and in yields will keep the dollar propped up, particularly against the euro.

The dollar index was a tad lower at 105.23, with the euro up 0.11% at $1.0667. Sterling was last trading at $1.2397, up 0.06% on the day.

Oil prices, a key indicator of currency parity, rose for a third straight session on Monday, buoyed by forecasts of a widening supply deficit in the fourth quarter after Saudi Arabia and Russia extended cuts and by optimism about a recovery in demand in China.

Inter-bank market rates for dollar on Monday

BID Rs 295.90

OFFER Rs 296.10

Open-market movement

In the open market, the PKR remained unchanged for both buying and selling against USD, closing at 294.00 and 297.00, respectively.

Against Euro, the PKR gained 6.00 rupees for both buying and selling, closing at 315.00 and 318.00, respectively.

Against UAE Dirham, the PKR gained 1.20 rupee for both buying and selling, closing at 81.00 and 81.80, respectively.

Against Saudi Riyal, the PKR gained 30 paisa for buying and 20 paisa for selling, closing at 78.70 and 79.50, respectively.

Open-market rates for dollar on Monday

BID Rs 294.00

OFFER Rs 297.00