Rupee inches upward, settles at 279.55 against US dollar

The rupee registered a marginal gain against the US dollar, appreciating 0.03% in the inter-bank market on Tuesday.

As per the State Bank of Pakistan (SBP), the rupee closed at 279.55 after an increase of Re0.09 against the greenback.

On Monday, the rupee had registered a marginal loss to settle at 279.64 against the US dollar, according to the SBP.

In a key development, the Monetary Policy Committee (MPC) of the SBP on Monday maintained status quo and kept the key policy rate at 22%.

“The committee noted that the external account (position) has become better,” said SBP Governor Jameel Ahmad as he began the press conference.

Ahmad said despite payments of $6.2 billion, foreign exchange reserves have improved.

Globally, the US dollar held narrow ranges against its major peers on Tuesday, as traders awaited the Federal Reserve’s monetary policy decision for clues on when the US central bank might cut rates.

In the meantime, jobs opening data from the US Department of Labor Statistics due later in the day will act as a preview to the closely watched payroll report to be released on Friday.

The dollar was steady in the Asian morning, with market participants moving cautiously ahead of the two-day FOMC meeting that kicks off on Tuesday.

While the Fed is expected to hold interest rates, the focus is on the tone that Fed Chair Jerome Powell strikes at the press conference on Wednesday and any hints of rate cuts soon.

Oil prices, a key indicator of currency parity, gained on Tuesday following a more than 1% drop in the previous session as escalating geopolitical tensions in major producing regions the Middle East fuelled supply concerns.

Brent crude futures rose 7 cents, or 0.07%, to $82.46 a barrel by 0734 GMT.

US West Texas Intermediate crude was up 15 cents, or 0.31%, at $76.93 a barrel.

Both the contracts fell over $1 on Monday as a deepening real estate crisis fuelled worries about demand from China, the world’s biggest crude consumer, after a Hong Kong court ordered the liquidation of property giant China Evergrande Group.

Inter-bank market rates for dollar on Tuesday

BID                            Rs 279.55

OFFER                      Rs 279.75

Open-market movement

In the open market, the PKR gained 31.00 paisa for buying and 23.00 paisa for selling against USD, closing at 278.71 and 280.86, respectively.

Against Euro, the PKR gained 24.00 paisa for buying and 58.00 paisa for selling, closing at 301.40 and 304.02, respectively.

Against UAE Dirham, the PKR gained 9.00 paisa for buying and 7.00 paisa for selling, closing at 76.17 and 76.88, respectively.

Against Saudi Riyal, the PKR gained 1.00 paisa for buying and lost 2.00 paisa for selling, closing at 74.34 and 75.01, respectively.

Open-market rates for dollar on Tuesday

BID                            Rs 278.71

OFFER                      Rs 280.86