Rupee largely stable against US dollar

The Pakistani rupee remained largely stable, depreciating 0.01% against the US dollar in the inter-bank market on Monday.

At close, the local unit settled at 277.95, a loss of Re0.02 against the greenback, as per the State Bank of Pakistan (SBP).

During the previous week, the rupee ended with a minor gain against the US dollar, continuing a positive close for the sixth consecutive week.

The local unit gained Re0.02 or 0.007% to close at 277.93, compared to 277.95 the week earlier against the greenback.

In a key development, it was reported that the size and duration of a new International Monetary Fund (IMF) loan programme would be determined by the Fund mission as is the usual practice.

Globally, the US dollar was firm but sluggish in Asian trading on Monday as investors looked ahead to US inflation data after the big payrolls number last week, and as Treasury yields reached for December highs.

US consumer price inflation for March on Wednesday and a European Central Bank (ECB) policy meeting on Thursday will be the main economic markers for the big global currencies this week.

Those follow a week of vacillation as traders watched Japanese authorities talk their currency higher, and as US services, the closely watched employment report on Friday and a bunch of Federal Reserve speakers sent mixed signals on rates.

The dollar was just marginally higher, with the Canadian dollar the biggest loser at 0.5% among the six currencies in the dollar’s trade-weighted index.

Oil prices, a key indicator of currency parity, slid more than $1 a barrel on Monday, with Brent falling below $90, as Middle East tensions eased after Israel withdrew more soldiers from southern Gaza and committed to fresh talks on a potential ceasefire in the six-month conflict.

Brent crude futures dropped $1.48, or 1.6%, to $89.69 a barrel by 0615 GMT. US West Texas Intermediate crude was at $85.54 a barrel, down $1.37, or 1.5%.

Inter-bank market rates for dollar on Monday

BID                            Rs 277.95

OFFER                      Rs 278.15

Open-market movement

In the open market, the PKR gained 11.00 paisa for buying and 7.00 paisa for selling against USD, closing at 277.02 and 279.58, respectively.

Against Euro, the PKR gained 17.00 paisa for buying and 15.00 paisa for selling, closing at 298.34 and 301.06, respectively.

Against UAE Dirham, the PKR gained 4.00 paisa for both buying and selling, closing at 75.20 and 75.92, respectively.

Against Saudi Riyal, the PKR gained 3.00 paisa for both buying and selling, closing at 73.19 and 73.90, respectively.

Open-market rates for dollar on Monday

BID                            Rs 277.02

OFFER                      Rs 279.58