Rupee maintains stability against US dollar ahead of holidays

The Pakistani rupee remained largely stable against the US dollar in the inter-bank market on Tuesday.

At close, the local unit settled at 277.94, a gain of Re0.01 against the greenback, as per the State Bank of Pakistan (SBP).

On Monday, the rupee remained largely stable to settle at 277.95 against the US dollar, according to the SBP.

In a key development, inflows of workers remittance recorded a healthy growth of 31% in March 2024 compared to February 2024, the central bank reported on Monday.

According to SBP, the country received workers’ remittances amounting to $3 billion during March 2024 compared to $2.25 billion in February 2024, an increase of $750 million.

Remittances in March are the highest monthly inflows in 22 months.

Internationally, the US dollar was tentative on Tuesday as it failed to get a meaningful boost from a rise in US Treasury yields, though that kept pressure on the yen which languished near multi-decade lows and left traders on alert for any signs of intervention.

Despite a rise in US Treasury yields the dollar has failed to draw meaningful support as traders reassess their expectations of the pace and scale of Federal Reserve rate cuts priced in by markets for later this year.

Against a basket of currencies, the greenback languished near a two-week low at 104.13.

Oil prices, a key indicator of currency parity, rose on Tuesday after hopes diminished that negotiations between Israel and Hamas would lead to a ceasefire in Gaza amid concerns the lingering conflict could potentially disrupt supply from the key Middle East-producing region.

Brent crude futures rose 14 cents to $90.52 a barrel by 0610 GMT. US West Texas Intermediate (WTI) crude was 10 cents higher at $86.53.

A fresh round of Israel-Hamas ceasefire discussions in Cairo had ended a multi-session rally on Monday, leading Brent to its first decline in five sessions and WTI to its first in seven on the prospect that geopolitical risks could ease.

Inter-bank market rates for dollar on Tuesday

BID                            Rs 277.94

OFFER                      Rs 278.14

Open-market movement

In the open market, the PKR gained 20.00 paisa for buying and 21.00 paisa for selling against USD, closing at 276.82 and 279.37, respectively.

Against Euro, the PKR lost 50.00 paisa for buying and 41.00 paisa for selling, closing at 298.84 and 301.47, respectively.

Against UAE Dirham, the PKR gained 5.00 paisa for both buying and selling, closing at 75.15 and 75.87, respectively.

Against Saudi Riyal, the PKR gained 6.00 paisa for buying and 7.00 paisa for selling, closing at 73.13 and 73.83, respectively.

Open-market rates for dollar on Tuesday

BID                            Rs 276.82

OFFER                      Rs 279.37