Inter-bank: rupee extends gains against US dollar

The Pakistani rupee registered gains against the US dollar for the fourth successive session, as it appreciated 0.06% in the inter-bank market on Tuesday.

As per the State Bank of Pakistan (SBP), the rupee settled at 285.79, an increase of Re0.18.

On Monday, the rupee registered gains to settle at 285.97 against the US dollar.

In a related development, Pakistan’s Foreign Direct Investment (FDI) rose by 7% during the first four months of this fiscal year (FY24), the State Bank of Pakistan reported on Monday.

Overall, Pakistan fetched FDI amounted to $525 million in July-Oct of FY24 as against $490 million in corresponding period of last fiscal year (FY23), showing an increase of $35 million.

Internationally, the US dollar slipped to fresh milestone lows on the euro, yen and other major currencies on Tuesday, as China guided the yuan higher and its strength spurred broader softness for the dollar ahead of minutes from the Federal Reserve.

The dollar index, which has fallen in seven of the past eight sessions, broke below its 200-day moving average on Monday and was down 0.2% at 103.2 on Tuesday, a 2-1/2-month low.

Markets have all but priced out the risk of a further US rate hike in December or next year, and imply a 1-in-4 chance of an easing starting in March.

Fed minutes are due at 1900 GMT and headline the day ahead, along with a speech from European Central Bank President Christine Lagarde.

Oil prices, a key indicator of currency parity, fell on Tuesday, reversing steep gains made in the past two sessions, as investors turned cautious ahead of a meeting of OPEC+ this Sunday when the producer group may discuss deepening supply cuts due to slowing global growth.

Brent crude futures fell 51 cents, or 0.6%, to $81.81 a barrel by 0746 GMT, while US West Texas Intermediate crude futures were at $77.32 a barrel, down 51 cents, or 0.7%.

Inter-bank market rates for dollar on Tuesday

BID                            Rs 285.80

OFFER                      Rs 286.00

Open-market movement

In the open market, the PKR gained 25 paisa for both buying and selling against USD, closing at 284.25 and 287.25, respectively.

Against Euro, the PKR gained 1.00 rupee for both buying and selling, closing at 308.00 and 311.00, respectively.

Against UAE Dirham, the PKR gained 50 paisa for buying and 40 paisa for selling, closing at 77.50 and 78.30, respectively.

Against Saudi Riyal, the PKR gained 30 paisa for buying and 20 paisa for selling, closing at 75.50 and 76.30, respectively.

Open-market rates for dollar on Tuesday

BID                            Rs 284.25

OFFER                      Rs 287.25