Markets

Rupee marginally gains against US dollar

  • Currency settles at 278.21 against the greenback in inter-bank market
Published May 24, 2024

The Pakistani rupee appreciated marginally against the US dollar, gaining 0.03% in the inter-bank market on Friday.

At close, the local unit settled at 278.21, a gain of Re0.09 against the greenback, as per the State Bank of Pakistan (SBP).

On Thursday, the rupee had closed at 278.30, up by Re0.17.

The rupee has largely been stable around this rate for months with Pakistan eager to sign up for another bailout programme with the International Monetary Fund (IMF) after its previous $3-billion Stand-By Arrangement (SBA) ended.

In a key development, Pakistan authorities and the IMF have made “significant progress” towards reaching a staff-level agreement (SLA) on a new programme, according to an end-of-mission statement posted on the lender’s website on Friday.

The IMF mission, which concluded its visit on May 23, was in Islamabad to discuss Pakistan’s pursuit of a longer, larger Extended Fund Facility (EFF).

“Building on the economic stabilisation achieved through the successful completion of the 2023 Stand-by Arrangement (SBA), the IMF and the Pakistani authorities made significant progress toward reaching a Staff Level Agreement (SLA) on a comprehensive economic policy and reform program that can be supported under an Extended Fund Facility (EFF),” IMF Mission Chief to Pakistan Nathan Porter was quoted as saying in the statement.

Authorities in Islamabad have been keen to pursue a 24th bailout with the IMF, hoping that a longer, larger EFF will put it on the path of permanence when it comes to economic stability and reform.

Internationally, the US dollar headed for its largest weekly rise in a month and a half on Friday, helped by surprisingly strong US economic indicators and a hawkish tone in Federal Reserve minutes.

Overnight May figures showed US business activity accelerated to the highest level in just over two years and manufacturers reported a surge in prices for a range of inputs, prompting a pullback in US interest rate cut expectations.

The US dollar index, which measures the dollar against a basket of six major peers, was last up nearly 0.6% on the week to 105.07, on course for its largest one-week rise since mid-April.

Oil prices, a key indicator of currency parity, extended losses on Friday, pressured by lingering concerns that sticky inflation could prolong higher interest rates and curb fuel demand.

Brent crude futures fell by 58 cents, or 0.71%, to $80.78 a barrel by 0952 GMT.

US West Texas Intermediate (WTI) crude futures were down 59 cents, or 0.77%, at $76.28.

Both benchmarks settled at multi-month lows on Thursday, with Brent closing at its weakest since February 7 and US crude at its lowest since February 23.

Inter-bank market rates for dollar on Friday

BID Rs 278.21

OFFER Rs 278.41

Open-market movement

In the open market, the PKR gained 3.00 paisa for buying and remained unchanged for selling against USD, closing at 277.02 and 279.55, respectively.

Against Euro, the PKR gained 69.00 paisa for buying and 68.00 paisa for selling, closing at 297.63 and 300.48, respectively.

Against UAE Dirham, the PKR gained 4.00 paisa for buying and 3.00 paisa for selling, closing at 75.17 and 75.91, respectively.

Against Saudi Riyal, the PKR gained 5.00 paisa for buying and 4.00 paisa for selling, closing at 73.42 and 74.11, respectively.

Open-market rates for dollar on Friday

BID Rs 277.02

OFFER Rs 279.55

Comments

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Syed Zulfiqar Ali May 24, 2024 12:33pm
Well done- political stability .AH.
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Naqvi May 24, 2024 08:34pm
From 278 to 233 Or 333.
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