Markets

Rupee registers minor loss against US dollar

  • Currency settles at 278.33 against greenback in inter-bank market
Published April 22, 2024

The Pakistani rupee registered a marginal decline, depreciating 0.01% against the US dollar in the inter-bank market on Monday.

At close, the local unit settled at 278.33, a loss of Re0.02 against the greenback, as per the State Bank of Pakistan (SBP).

During the previous week, the rupee registered a slight decrease against the US dollar as it closed lower by Re0.37 or 0.13%.

The local unit ended at 278.31, against 277.94 it had closed the week earlier against the greenback.

In a key development, it was reported that the International Monetary Fund (IMF) has not yet included Pakistan on the agenda of its executive board meetings scheduled till May 1.

As per the Fund website, the IMF issued the schedule of the executive board meeting set to be held on April 29 and May 1, but a review under the $ 3-billion stand-by arrangement (SBA) programme with Pakistan is not on the agenda.

Pakistan hopes the executive board’s approval will pave the way for the country to receive funds of around $1.1 billion as its final tranche of the $3-billion SBA signed last year in June 2023.

Globally, the US dollar stayed near its highs after last week’s hectic policy and geopolitical developments.

The dollar’s trade-weighted index was above 106, but off five-month highs it struck last week after comments from Federal Reserve officials and a run of hotter-than-expected inflation data forced a paring back of rate cut expectations.

A cooling in Middle East tensions, which had driven the dollar, gold and crude oil prices sharply higher on Friday and battered stock markets, also helped temper volatility.

Oil prices, a key indicator of currency parity, fell on Monday, dragged down by a renewed focus on market fundamentals as Israel and Iran played down the risks of an escalation of hostilities in the Middle East after Israel’s apparently small strike on Iran.

Brent futures fell 67 cents, or 0.77%, to $86.62 a barrel by 0415 GMT. The front-month US West Texas Intermediate (WTI) crude contract for May, which expires on Monday, fell 63 cents, or 0.76%, to $82.51 a barrel, while the more active June contract dropped 64 cents to $81.58 a barrel.

Inter-bank market rates for dollar on Monday

BID                            Rs 278.33

OFFER                      Rs 278.53

Open-market movement

In the open market, the PKR lost 8.00 paisa for buying and 20.00 paisa for selling against USD, closing at 277.16 and 279.80, respectively.

Against Euro, the PKR lost 22.00 paisa for buying and 32.00 paisa for selling, closing at 293.22 and 296.03, respectively.

Against UAE Dirham, the PKR lost 4.00 paisa for buying and 3.00 paisa for selling, closing at 75.13 and 75.85, respectively.

Against Saudi Riyal, the PKR lost 1.00 paisa for buying and gained 1.00 paisa for selling, closing at 73.23 and 73.90, respectively.

Open-market rates for dollar on Monday

BID                            Rs 277.16

OFFER                      Rs 279.80

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