Inter-bank market: rupee’s winning streak continues, settles at 276.83 against USD

The Pakistani rupee continued its winning spree against the US dollar as it gained another 0.29% in the inter-bank market on Monday. This is the rupee’s 28th successive appreciation against the greenback.

As per the State Bank of Pakistan (SBP), the rupee settled at 276.83 after an increase of Re0.79 in the inter-bank market.

During the previous week, the rupee extended its winning streak gaining 1.79% during the five sessions to close at 277.62 against the US dollar in the inter-bank market.

Since its record low of 307.1 in the inter-bank market on Sept 5, the local currency has eked out one of the longest appreciation runs.

The unprecedented increase has come largely on the back of a crackdown against smuggling and controls on the Exchange Companies (ECs) sector.

With strict actions, the central bank has become more vigilant on exchange companies. During the last one month, authorisation of 9 exchange companies has been suspended for serious violations.

In a key development, Dr Shamshad Akhtar, Federal Minister for Finance, Revenue, and Economic Affairs, participated in a high-profile meeting of MENAP Finance Ministers and Central Bank Governors with the Managing Director of the International Monetary Fund (IMF) in Morocco on Sunday.

Dr Akhtar’s contributions underlined Pakistan’s commitment to advancing economic prosperity and global financial cooperation. “Pakistan is determined to economic development,” she said during the meeting.

Globally, the US dollar was on the front foot on Monday in cautious trade as tensions in the Middle East escalated, while investors awaited a speech by Federal Reserve Chair Jerome Powell later this week for further clues on the US central bank’s rate outlook.

On the policy front, traders looked to Fed Chair Powell’s speech before the Economic Club of New York for clues on how much further US interest rates could rise, after data last week showed consumer prices increased more than expected in September.

Markets are largely expecting the Fed to keep rates on hold when it announces its next monetary policy decision in November, according to the CME FedWatch tool, though they see a roughly 32% chance the central bank could deliver a rate hike in December.

Oil prices, a key indicator of currency parity, steadied above $90 a barrel on Monday after passing the threshold on Friday, as investors waited to see if the Israel-Hamas conflict draws in other countries.

Inter-bank market rates for dollar on Monday

BID                            Rs 276.85

OFFER                      Rs 277.05

Open-market movement

In the open market, the PKR remained unchanged for both buying and selling against USD, closing at 274.00 and 277.00, respectively.

Against Euro, the PKR gained 1.00 rupee for both buying and selling, closing at 292.00 and 295.00, respectively.

Against UAE Dirham, the PKR remained unchanged for both buying and selling, closing at 76.00 and 76.75, respectively.

Against Saudi Riyal, the PKR gained 20 paisa for both buying and selling, closing at 73.30 and 74.00, respectively.

Open-market rates for dollar on Monday

BID                            Rs 274.00

OFFER                      Rs 277.00