Markets

Rupee depreciates marginally against US dollar

  • Currency settles at 278.37 against the greenback in inter-bank market
Published June 10, 2024

The Pakistani rupee depreciated marginally against the US dollar, falling 0.06% in the inter-bank market on Monday.

At close, the local unit settled at 278.37, a decline of Re0.17 against the greenback.

During the previous week, the rupee strengthened marginally as it gained Re0.13 or 0.04% against the US dollar. The local unit closed at 278.20, against 278.33 it had closed the week earlier against the greenback, according to the State Bank of Pakistan (SBP).

In recent weeks, the domestic currency has largely been around 277-279 against the dollar as Pakistan moves forward with its plan to win a longer and longer International Monetary Fund (IMF) bailout programme.

Last week, the IMF said talks were continuing virtually with authorities in Islamabad towards reaching a staff-level agreement (SLA) on a new programme.

Internationally, the euro fell on Monday as the French President Emmanuel Macron called a shock election after being trounced in the European Union vote by the far-right, while the US dollar was steady ahead of the Federal Reserve meeting later in the week.

US nonfarm payrolls expanded by 272,000 jobs last month, data showed, while economists polled by Reuters had forecast payrolls advancing by 185,000.

The dollar index, which measures the US currency against six rivals, was at 105.09, the highest since May 30, after rising 0.8% on Friday following data that showed the world’s largest economy created a lot more jobs than expected in May.

Oil prices, a key indicator of currency parity, edged up on Monday, buoyed by hopes of rising fuel demand this summer, though gains were capped by a strengthening of the dollar on receding expectations of imminent cuts to US interest rates.

Goldman Sachs analysts expect Brent to rise to $86 a barrel in third quarter, saying in a report that solid summer transport demand will push the oil market into a third-quarter deficit of 1.3 million barrels per day (bpd).

Brent crude futures gained 28 cents, or 0.4%, to $79.90 a barrel by 0815 GMT.

US West Texas Intermediate crude futures were up 36 cents, or 0.5%, at $75.89.

Inter-bank market rates for dollar on Monday

BID                            Rs 278.37

OFFER                      Rs 278.57

Open-market movement

In the open market, the PKR lost 12 paise for buying and 9 paise for selling against USD, closing at 277.70 and 280.15, respectively.

Against Euro, the PKR gained 1.58 rupee for buying and 1.64 rupee for selling, closing at 296.15 and 299.01, respectively.

Against UAE Dirham, the PKR gained 2 paise for buying and 4 paise for selling, closing at 75.22 and 75.95, respectively.

Against Saudi Riyal, the PKR gained 10 paise for buying and 8 paise for selling, closing at 73.39 and 74.09, respectively.

Open-market rates for dollar on Monday

BID                            Rs 277.70

OFFER                      Rs 280.15

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