Rupee records 5th consecutive gain, settles at 281.22 against US dollar

The Pakistani rupee continued its appreciation run against the US dollar for the fifth consecutive session, appreciating 0.02% in the inter-bank market on Tuesday.

As per the State Bank of Pakistan (SBP), the rupee settled at 281.22 after an increase of Re0.06.

On Monday, the rupee had registered a marginal gain to settle at 281.28 against the US dollar.

Globally, the US dollar paused its rally on Tuesday, as traders reaffirmed their bets for a slew of Federal Reserve rate cuts this year on the belief that inflation in the US is slowing sufficiently.

In cryptocurrencies, bitcoin hovered near its strongest level since April 2022 on growing anticipation of imminent approvals of spot bitcoin exchange-traded funds (ETF).

The moves were partly driven by the New York Fed’s latest Survey of Consumer Expectations which showed that US consumers’ projection of inflation over the short run fell to the lowest level in nearly three years in December.

A reading on US inflation is due later in the week, which will likely provide further clarity on how much room the Fed has to ease rates this year.

Futures point to nearly 140 basis points worth of easing priced in for the Fed this year.

Against a basket of currencies, the US dollar eased slightly by 0.08% to 102.22, having risen 1% last week.

Oil prices, a key indicator of currency parity, steadied on Tuesday after sliding in the previous session, as markets weighed Middle East tensions against demand worries and rising OPEC supply.

Brent crude futures rose 17 cents, or 0.2%, to $76.29 a barrel at 0707 GMT, while US West Texas Intermediate crude futures inched up 0.1%, or 5 cents, to $70.82 a barrel.

The benchmarks had fallen over 3% and 4% respectively on Monday on sharp price cuts by top exporter Saudi Arabia and a rise in OPEC output.

Inter-bank market rates for dollar on Tuesday

BID                            Rs 281.22

OFFER                      Rs 281.42

Open-market movement

In the open market, the PKR lost 9.00 paisa for buying and remained unchanged for selling against USD, closing at 280.07 and 282.34, respectively.

Against Euro, the PKR lost 20.00 paisa for buying and 16.00 paisa for selling, closing at 306.20 and 309.00, respectively.

Against UAE Dirham, the PKR lost 2.00 paisa for buying and 5.00 paisa for selling, closing at 76.40 and 77.10, respectively.

Against Saudi Riyal, the PKR lost 3.00 paisa for buying and 2.00 paisa for selling, closing at 74.63 and 75.31, respectively.

Open-market rates for dollar on Tuesday

BID                            Rs 280.07

OFFER                      Rs 282.34