Inter-bank: rupee sees sixth successive gain against US dollar

The Pakistani rupee continued its upward march against the US dollar for the sixth successive session as it appreciated 0.07% in the inter-bank market on Tuesday.

As per the State Bank of Pakistan (SBP), the rupee settled at 283.01 after an increase of Re0.20.

On Monday, the rupee recorded a slight gain to settle at 283.21 against the US dollar.

In a related development, Pakistan borrowed $4.285 billion from multiple financing sources during the first five months (July-November) of the current fiscal year 2023-24, compared to $5.114 billion borrowed during the same period of 2022-23, revealed data of the Economic Affairs Division (EAD).

Internationally, the US dollar dipped 0.3% against the yen, and stood not too far from a four-month high of 140.95 hit last week.

Elsewhere, the greenback languished near roughly five-month lows against the Australian and New Zealand dollars, as the risk-sensitive currencies got a leg up on the prospect that the US Federal Reserve could begin easing interest rates as soon as early next year.

While some Fed officials have pushed back against market expectations of how soon the Federal Open Market Committee (FOMC) could cut rates, those comments have done little to sway market pricing and stem the greenback’s decline.

Chicago Fed President Austan Goolsbee on Monday said the Fed is not pre-committing to cutting rates soon and swiftly, and the jump in market expectations that it will do so is at odds with how the US central bank functions.

Oil prices, a key indicator of currency parity, steadied on Tuesday as investors considered the potential impact on oil supply from attacks by Yemen’s Iran-aligned Houthi militants against ships in the Red Sea, which have disrupted maritime trade and forced companies to reroute vessels.

Crude prices had climbed nearly 2% on Monday on fears over the disruptions to trade via the Suez Canal, the shortest shipping route between Europe and Asia, which accounts for about 15% of global shipping traffic.

Brent crude fell 12 cents to $77.83 a barrel by 0914 GMT. US West Texas Intermediate crude for January, which expires on Tuesday, was down 62 cents at $71.85 while the more active February contract lost only 3 cents.

Inter-bank market rates for dollar on Tuesday

BID Rs 283.00

OFFER Rs 283.20

Open-market movement

In the open market, the PKR gained 25 paisa for both buying and selling against USD, closing at 281.25 and 284.25, respectively.

Against Euro, the PKR gained 1.00 rupee for both buying and selling, closing at 307.00 and 310.00, respectively.

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

Against Saudi Riyal, the PKR lost 10 paisa for both buying and selling, closing at 75.30 and 76.00, respectively.

Open-market rates for dollar on Tuesday

BID Rs 281.25

OFFER Rs 284.25