Rupee records 5th consecutive gain, settles at 279.79 against US dollar

The rupee maintained its upward momentum 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 closed at 279.79 after a gain of Re0.06 against the greenback.

On Monday, the rupee registered a gain as well as it settled at 279.85 against the US dollar, according to the SBP.

In a key development, Business Recorder reported that the government is making hectic efforts for a government-to-government (G2G) agreement with Saudi Arabia and United Arab Emirates (UAE) on upfront foreign currency repatriation against future workers’ remittances.

Finance Ministry, sources said, will update the Executive Committee (EC) of the Special Investment Facilitation Council (SIFC) which is scheduled to meet on Wednesday (Jan 24).

Both Saudi Arabia and UAE are key countries from where Pakistani workers send foreign exchange to Pakistan.

Internationally, the US dollar eased slightly, sending sterling up 0.07% to $1.2720.

The dollar index dipped 0.1% to 103.30, though remained not too far from an over one-month high of 103.69 hit last week, as traders pare back their expectations for a rate cut by the Federal Reserve in March.

That’s kept US Treasury yields supported, with the two-year yield last at 4.3910%.

The benchmark 10-year yield likewise settled above 4% and was last at 4.1014%.

Oil prices, a key indicator of currency parity, were little changed on Tuesday as traders weighed a host of conflicting supply and demand worries, from rising tensions in the Middle East to cold weather woes disrupting production in the United States.

Brent crude futures added 2 cents to $80.08 a barrel by 0702 GMT, while US West Texas Intermediate crude futures (WTI) climbed 3 cent to $74.79 a barrel.

Both the contracts had settled about 2% higher on Monday, as a Ukrainian drone strike on Novatek’s Ust-Luga fuel export terminal raised supply concerns and drove up prices.

Inter-bank market rates for dollar on Tuesday

BID                            Rs 279.79

OFFER                      Rs 279.99

Open-market movement

In the open market, the PKR lost 10.00 paisa for buying and 2.00 paisa for selling against USD, closing at 278.98 and 281.09, respectively.

Against Euro, the PKR gained 40.00 paisa for buying and 32.00 paisa for selling, closing at 303.29 and 306.21, respectively.

Against UAE Dirham, the PKR lost 2.00 paisa for buying and remained unchanged for selling, closing at 76.20 and 76.91, respectively.

Against Saudi Riyal, the PKR remained unchanged for both buying and selling, closing at 74.38 and 75.03, respectively.

Open-market rates for dollar on Tuesday

BID                            Rs 278.98

OFFER                      Rs 281.09