- Local currency has appreciated 7.1% since it hit a record low of 307.1 in inter-bank market on Sept 5
The Pakistani rupee continued to strengthen against the US dollar, gaining 0.34% in the inter-bank market on Monday. This is the rupee’s 18th consecutive increase against the greenback.
As per the State Bank of Pakistan (SBP), the rupee settled at 286.76 after an increase of Re0.98 in the inter-bank market.
The phenomenal increase, which comes largely on the back of a crackdown against smuggling and controls on the Exchange Companies (ECs) sector, also meant the rupee was the best-performing currency in the world in September. It closed the month with a gain of 6.2%.
The performance is in stark contrast to overall depreciation in the first eight months of 2023, which stood at nearly 26%.
Globally, the US dollar kicked off the last quarter of the year on the front foot on Monday as the prospect of higher-for-longer US rates provided solid support, pushing the yen to an 11-month low.
Currency moves were subdued in early Asia trade with parts of Australia out for a holiday and China away for its Golden Week, though analysts said a narrowly-averted US government shutdown could bring some relief to market.
The US dollar index, however, stood not too far from its recent 10-month high and was last at 106.24, after clocking its best quarterly performance in a year last month thanks to persistently hawkish Federal Reserve rhetoric.
Oil prices, a key indicator of currency parity, held steady on Monday after suffering losses at the end of last week, as investors’ focus returned to a tight global supply outlook while a last-minute deal that avoided a US government shutdown restored some risk appetite.
Inter-bank market rates for dollar on Monday
BID Rs 286.70
OFFER Rs 286.90
In the open market, the PKR gained 1.50 rupee for both buying and selling against USD, closing at 283.50 and 286.50, respectively.
Against Euro, the PKR remained unchanged for both buying and selling, closing at 303.00 and 306.00, respectively.
Against UAE Dirham, the PKR gained 1.00 rupee for both buying and selling, closing at 78.00 and 78.80, respectively.
Against Saudi Riyal, the PKR remained unchanged for both buying and selling, closing at 75.50 and 76.20, respectively.
Open-market rates for dollar on Monday
BID Rs 283.50
OFFER Rs 286.50