Inter-bank: rupee registers fifth consecutive gain against US dollar

The Pakistani rupee registered a gain for the fifth consecutive session against the US dollar as it appreciated 0.02% in the inter-bank market on Monday.

As per the State Bank of Pakistan (SBP), the rupee settled at 283.21 after an increase of Re0.05.

During the previous week, the rupee appreciated Re0.61 or 0.21% to settle at 283.26 against the US dollar in the inter-bank market.

It was also the fifth consecutive week that the rupee advanced against the dollar, a momentum aided by the announcement of a staff-level agreement (SLA) between Pakistan and the International Monetary Fund (IMF) on the first review of the $3 billion Stand-by Arrangement (SBA).

Since the announcement of the SLA on November 15, the local unit has gained Rs4.88 or 1.7% against the greenback.

Globally, in the broader market, currencies started the week on a cautious note after large swings last week mainly driven by a slew of central bank meetings, which included rate decisions from the Federal Reserve, the European Central Bank (ECB) and the Bank of England (BoE).

The greenback, which has for most of 2022 and 2023, drawn support from a slew of aggressive rate hikes from the Fed and expectations of higher-for-longer rates, tumbled roughly 1.3% against a basket of currencies last week in the wake of the Fed’s policy meeting.

The dollar index was last 0.05% lower at 102.57.

Oil prices, a key indicator of currency parity, rose on Monday as attacks by the Houthis on ships in the Red Sea raised concerns of oil supply disruptions and Russia’s plan to lower exports in December provided additional support.

Shipping firms, including the world’s biggest container shipping line MSC and A.P. Moller-Maersk, said over the weekend that they would avoid the Suez Canal as Houthi militants in Yemen stepped up their assaults on commercial vessels in the Red Sea.

Brent crude futures were up 17 cents, or 0.2%, to $76.72 a barrel by 0910 GMT, while US West Texas Intermediate crude rose 48 cents, or 0.7%, to $71.91.

Inter-bank market rates for dollar on Monday

BID Rs 283.20

OFFER Rs 283.40

Open-market movement

In the open market, the PKR remained unchanged for both buying and selling against USD, closing at 281.50 and 284.50, respectively.

Against Euro, the PKR remained unchanged for both buying and selling, closing at 308.00 and 311.00, respectively.

Against UAE Dirham, the PKR gained 20 paisa for both buying and selling, closing at 77.30 and 78.00, respectively.

Against Saudi Riyal, the PKR gained 10 paisa for both buying and selling, closing at 75.20 and 75.90, respectively.

Open-market rates for dollar on Monday

BID Rs 281.50

OFFER Rs 284.50