Rupee sustains losses against US dollar

The Pakistani rupee recorded a marginal decline against the US dollar, depreciating 0.03% in the inter-bank market on Monday.

At close, the local unit settled at 279.26, a loss of Re0.07, against the greenback, as per the State Bank of Pakistan (SBP).

During the previous week, the rupee posted marginal gain as it increased Re0.17 or 0.06% against the US dollar in the inter-bank market.

The local unit closed the week at 279.19 level against the greenback, as per the SBP.

In a key development, following the general elections last month, Shehbaz Sharif was elected on Sunday as the prime minister of the country for a second term by securing 201 votes.

Globally, the US dollar drifted weaker on Monday, pressured by lower Treasury yields, as traders waited for more crucial economic data for fresh clues on the timing of Federal Reserve interest rate cuts.

Bitcoin rose to a more than two-year peak amid big flows into cryptocurrency exchange-traded funds.

The dollar index - which measures the currency against six major peers, including the euro and yen - eased 0.07% to 103.79 in early Asian trading, bringing it closer to the bottom of the 103.43-104.97 range of the past month.

The index lost 0.26% on Friday following some weak manufacturing and construction spending data.

Oil prices, a key indicator of currency parity, ticked up slightly on Monday following the widely expected extension of voluntary output cuts by the OPEC+ producer group on Sunday.

Brent futures climbed 14 cents to $83.69 a barrel at 0729 GMT after rising 2.4% last week.

US West Texas Intermediate (WTI) inched up 3 cents to $80 a barrel following a 4.6% gain last week.

The output cuts by the Organization of the Petroleum Exporting Countries and its allies (OPEC+) are expected to cushion the market amid global economic concerns and rising output outside the group, with Russia’s announcement surprising some analysts.

Inter-bank market rates for dollar on Monday

BID Rs 279.26

OFFER Rs 279.46

Open-market movement

In the open market, the PKR gained 2.00 paisa for buying and lost 2.00 paisa for selling against USD, closing at 279.41 and 282.05, respectively.

Against Euro, the PKR lost 15.00 paisa for buying and 24.00 paisa for selling, closing at 301.64 and 304.51, respectively.

Against UAE Dirham, the PKR remained unchanged for buying and gained 1.00 paisa for selling, closing at 75.97 and 76.69, respectively.

Against Saudi Riyal, the PKR lost 1.00 paisa for both buying and selling, closing at 74.21 and 74.90, respectively.

Open-market rates for dollar on Monday

BID Rs 279.41

OFFER Rs 282.05