Inter-bank: rupee registers marginal fall against US dollar

The Pakistani rupee registered a minor loss against the US dollar as it depreciated 0.11% in the inter-bank market on Tuesday.

As per the State Bank of Pakistan (SBP), the rupee settled at 279.43, a decrease of Re0.31.

On Monday, the rupee had also depreciated against the US dollar.

In a related development, the Ministry of Finance asked all ministries/ divisions to be ready for the first review of the International Monetary Fund’s (IMF) Standby Arrangement (SBA) to ensure successful completion of the review, official sources told Business Recorder.

A favourable review by the Washington-based lender will pave way for release of the second tranche and funding from other multilateral partners.

Meanwhile, the Economic Coordination Committee (ECC) of the Cabinet approved an increase in gas tariff.

Internationally, the US dollar softened against a basket of currencies on Tuesday, mirroring a dip in Treasuries yields as investors awaited key US economic data before the Federal Reserve’s monetary policy meeting next week.

The dollar index last sat around 105.57, having lost over 0.5% in the previous session as US Treasury yields tumbled.

The greenback found support last week after Fed Chair Jerome Powell said US economic strength might warrant tighter financial conditions, which pushed the benchmark 10-year yield above 5% to its highest since July 2007.

Oil prices, a key indicator of currency parity, rose on Tuesday, recovering some of the previous day’s losses, as investors remained nervous that the Israel-Hamas war could escalate into a wider conflict in the oil-exporting region, causing potential supply disruptions.

Brent crude futures climbed 57 cents, or 0.6%, to $90.40 a barrel by 0321 GMT, while US West Texas Intermediate crude futures increased 54 cents, or 0.6%, to $86.03 a barrel.

Inter-bank market rates for dollar on Tuesday

BID                            Rs 279.40

OFFER                      Rs 279.60

Open-market movement

In the open market, the PKR lost 50 paisa for both buying and selling against USD, closing at 278.50 and 281.50, respectively.

Against Euro, the PKR lost 1.00 rupee for both buying and selling, closing at 294.00 and 297.00, respectively.

Against UAE Dirham, the PKR remained unchanged for both buying and selling, closing at 78.00 and 78.75, respectively.

Against Saudi Riyal, the PKR lost 10 paisa for both buying and selling, closing at 74.30 and 75.00, respectively.

Open-market rates for dollar on Tuesday

BID                            Rs 278.50

OFFER                      Rs 281.50