Inter-bank: rupee records seventh straight decline against US dollar

The Pakistani rupee lost value for the seventh successive session against the US dollar as it depreciated 0.18% in the inter-bank market on Tuesday.

As per the State Bank of Pakistan (SBP), the rupee settled at 281.47, a decrease of Re0.52.

On Monday, the rupee had depreciated 0.14% to settle at 280.95 against the US dollar.

In a related development, the Monetary Policy Committee (MPC) of the State Bank of Pakistan (SBP), in line with the wider market consensus, kept the key policy rate unchanged at 22% on Monday.

“The Committee noted that headline inflation rose in September 2023 as expected. However, it is projected to decline in October and then maintain a downward trajectory, especially in the second half of the fiscal year,” it said in a press release.

Internationally, the US dollar improved 0.7% against the Japanese yen, which past the 150 per dollar threshold to hit an intraday low of 150.12. It later pared some of those losses to stand at 149.95.

Against other currencies, the greenback edged broadly higher, with the dollar index last up 0.22% at 106.39.

While the index looked set to end the month largely unchanged, analysts say the dollar remains underpinned by risks of another rate hike from the Federal Reserve, noting a still-resilient US economy.

Oil prices, a key indicator of currency parity, rebounded in Asian trade on Tuesday, after a drop of more than 3% in the previous session, as worries over supply stirred by conflict in the Middle East offset dismal China data.

December Brent crude futures, set to expire on Tuesday, rose 65 cents, or 0.74%, to stand at $88.10 a barrel by 0637 GMT.

Inter-bank market rates for dollar on Tuesday

BID                            Rs 281.45

OFFER                      Rs 281.65

Open-market movement

In the open market, the PKR lost 50 paisa for both buying and selling against USD, closing at 280.00 and 283.00, respectively.

Against Euro, the PKR remained unchanged for both buying and selling, closing at 295.00 and 298.00, respectively.

Against UAE Dirham, the PKR gained 30 paisa for both buying and selling, closing at 78.50 and 79.20, respectively.

Against Saudi Riyal, the PKR gained 40 paisa for both buying and selling, closing at 74.80 and 75.50, respectively.

Open-market rates for dollar on Tuesday

BID                            Rs 280.00

OFFER                      Rs 283.00