Inter-bank: rupee sees 11th successive fall against US dollar

The Pakistani rupee endured losses against the US dollar for the eleventh consecutive session as it depreciated 0.34% in the inter-bank market on Monday.

As per the State Bank of Pakistan (SBP), the rupee settled at 285.29, a decrease of Re0.98.

During the previous week, the rupee had endured losses against the US dollar to close 1.33% or Rs3.74 lower at 284.31 in the inter-bank market.

It was the third consecutive week that the local currency witnessed a fall.

Before this, the local currency had maintained a positive close for 28 successive sessions – one of the longest appreciation runs – as it cumulatively gained 10.93% since hitting a record low of 307.1 in the inter-bank market on September 5.

The unprecedented increase had largely come on the back of a crackdown against smuggling and controls on exchange companies.

However, since then, the fortunes have turned in US dollar’s favour.

Internationally, major global currencies were steady early on Monday but seemed poised to extend last week’s uptrend as the dollar nursed its losses after the Federal Reserve dialled down its hawkish rhetoric.

The US dollar index was flat at 105.11, with the euro at $1.0726.

The dollar index declined more than 1% last week, its heaviest fall since mid-July and hit a six-week low.

Other indicators such as weakness in US jobs data, softer manufacturing numbers from around the world and a decline in longer dated Treasury yields also hurt the dollar.

Oil prices, a key indicator of currency parity, rose on Monday, after top exporters Saudi Arabia and Russia reaffirmed their commitment to extra voluntary oil supply cuts until the end of the year.

Brent crude futures rose $1.03, or 1.21%, to $85.92 a barrel by 0834 GMT, while US West Texas Intermediate crude was at $81.58 a barrel, up $1.07, or 1.33%.

Inter-bank market rates for dollar on Monday

BID                            Rs 285.30

OFFER                      Rs 285.50

Open-market movement

In the open market, the PKR lost 2.00 rupees for both buying and selling against USD, closing at 284.00 and 287.00, respectively.

Against Euro, the PKR lost 4.00 rupees for both buying and selling, closing at 303.00 and 306.00, respectively.

Against UAE Dirham, the PKR lost 1.00 rupee for buying and 1.10 rupee for selling, closing at 80.50 and 81.30, respectively.

Against Saudi Riyal, the PKR lost 50 paisa for both buying and selling, closing at 76.30 and 77.00, respectively.

Open-market rates for dollar on Monday

BID                            Rs 284.00

OFFER                      Rs 287.00