Inter-bank: rupee records 6th successive gain against US dollar

The Pakistani rupee’s appreciation run continued against the US dollar for the sixth successive session as it gained 0.05% in the inter-bank market on Tuesday.

As per the State Bank of Pakistan (SBP), the rupee settled at 284.38 after an increase of Re0.15.

On Monday, the rupee had registered a marginal gain to settle at 284.53 against the US dollar.

In a key development, the International Monetary Fund (IMF) Executive Board has issued meetings scheduled till December 14, but Pakistan is not on the agenda as the first review under the $3 billion stand-by arrangement (SBA) programme remains pending.

The current IMF programme of $3 billion is scheduled to end in the second week of April 2024, with around $1.8 billion remaining undisbursed. The Fund released $1.2 billion as the first tranche in July.

Globally, the US dollar regained some ground on Tuesday and hovered near a one-week high against a basket of currencies.

That left the Antipodean currency some distance away from Monday’s four-month top of $0.6690, which it hit on the back of the dollar’s decline over the past few sessions.

Elsewhere, the greenback held broadly steady and pushed away from Monday’s three-month low against the yen.

US economic indicators this week, including November’s non-manufacturing LSM figures and the closely watched nonfarm payrolls report, will provide further clarity on the future path of interest rates.

Traders have all but priced in a rate cut from the Federal Reserve by the first half of next year.

Oil prices, a key indicator of currency parity, held steady on Tuesday amid uncertainty over voluntary output cuts by the OPEC+ group of producers, tensions in the Middle East and weak economic data from the US.

Brent crude futures inched up 14 cents to $78.17 a barrel by 0735 GMT, while US West Texas Intermediate crude futures rose 15 cents to $73.19.

Inter-bank market rates for dollar on Tuesday

BID                            Rs 284.40

OFFER                      Rs 284.60

Open-market movement

In the open market, the PKR gained 25 paisa for both buying and selling against USD, closing at 282.25 and 285.25, respectively.

Against Euro, the PKR gained 2.00 rupees for both buying and selling, closing at 305.00 and 308.00, respectively.

Against UAE Dirham, the PKR remained unchanged for both buying and selling, closing at 77.30and 78.00, respectively.

Against Saudi Riyal, the PKR remained unchanged for both buying and selling, closing at 75.30 and 76.00, respectively.

Open-market rates for dollar on Tuesday

BID                            Rs 282.25

OFFER                      Rs 285.25