Markets

Rupee sees minor gain against US dollar

  • Currency settles at 279.2 in inter-bank market
Published February 26, 2024

The Pakistani rupee marginally increased against the US dollar, appreciating 0.06% in the inter-bank market on Monday.

At close, the local unit settled at 279.2, a gain of Re0.16 against the greenback, as per the State Bank of Pakistan (SBP).

During the previous week, the Pakistani rupee stood flat against the US dollar to settle at 279.36, the same rate it had closed the week earlier, in the inter-bank market.

Last week, Bloomberg News, citing a Pakistani official, reported that Pakistan plans to seek a new loan of at least $6 billion from the International Monetary Fund (IMF) to help the incoming government repay billions in debt due this year.

The country will seek to negotiate an Extended Fund Facility with the IMF, the report said, adding that the talks with the global lender were expected to start in March or April.

Globally, the US dollar was on the front foot on Monday ahead of a packed week filled with key economic releases that will provide further clues on the global interest rate outlook, with a U.S. inflation reading taking centre stage.

The core personal consumption expenditures (PCE) price index - the Federal Reserve’s preferred measure of inflation - is due on Thursday, where expectations are for a 0.4% increase on a monthly basis.

The dollar index was last 0.04% higher at 104.01.

Oil prices, a key indicator of currency parity, fell on Monday, extending losses on market views that higher-than-expected inflation could delay cuts to high-interest rates that have been capping growth in global fuel demand.

Brent crude futures fell 39 cents, or 0.5%, to $81.23 a barrel by 1001 GMT. US West Texas Intermediate crude futures (WTI) were down 34 cents, or 0.4%, at $76.15.

The dip extended losses registered last week, when Brent lost about 2% and WTI fell more than 3% on signs that the US Federal Reserve is in no rush to cut interest rates.

Inter-bank market rates for dollar on Monday

BID                            Rs 279.20

OFFER                      Rs 279.40

Open-market movement

In the open market, the PKR lost 2.00 paisa for buying and 5.00 paisa for selling against USD, closing at 279.64 and 282.28, respectively.

Against Euro, the PKR lost 20.00 paisa for buying and 17.00 paisa for selling, closing at 301.24 and 304.04, respectively.

Against UAE Dirham, the PKR lost 6.00 paisa for buying and 4.00 paisa for selling, closing at 76.05 and 76.75, respectively.

Against Saudi Riyal, the PKR lost 4.00 paisa for buying and 2.00 paisa for selling, closing at 74.27 and 74.97, respectively.

Open-market rates for dollar on Monday

BID                            Rs 279.64

OFFER                      Rs 282.28

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