Rupee remains stable against US dollar

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

At close, the currency settled at 277.87, a loss of Re0.03 against the US dollar.

During the previous week, the rupee further improved against the US dollar and closed below 278 level after more than five months.

The local unit closed at 277.84, a gain of Re0.32 or 0.11% against 278.16 it had closed the week earlier against the greenback, according to the State Bank of Pakistan (SBP).

The last time the rupee had closed below the 278 level was on April 9, 2024.

The currency market is now factoring in the International Monetary Fund (IMF) Executive Board meeting that is scheduled to take Pakistan’s 37-month Extended Fund Facility (EFF) of about $7 billion on its agenda on September 25.

Globally, the US dollar edged up 0.3% to 144.35 yen, having bounced 2.2% last week from a 139.58 low. The euro gained almost 3% last week to reach 161.09 against yen, while holding firm on the dollar at $1.1160.

Markets were still basking in the afterglow of the Federal Reserve’s half-point rate cut, with futures implying a 50% probability it will deliver another outsized move in November.

Oil prices, a key indicator of currency parity, rose slightly in choppy trade on Monday after last week’s cut to U.S. interest rates and a dip in U.S. crude supply in the aftermath of Hurricane Francine countered weaker demand from top oil importer China.

Brent crude futures for November edged up by 16 cents, or 0.21%, to $74.65 a barrel by 1011 GMT. U.S. crude futures for November were up 21 cents, or 0.30%, at $71.21.

Oil prices were buoyed last week by the U.S. Federal Reserve’s decision to cut interest rates by 50 basis points and signal further cuts by end of the year, though weaker demand from China is limiting the upside, said Charalampos Pissouros, senior investment analyst at brokerage XM.

Inter-bank market rates for dollar on Monday

BID                            Rs 277.87

OFFER                      Rs 278.07

Open-market movement

In the open market, the PKR gained 7 paise for buying and 2 paise for selling against USD, closing at 279.37 and 280.68, respectively.

Against Euro, the PKR gained 2.03 rupees for buying and 2.01 rupees for selling, closing at 306.84 and 309.86, respectively.

Against UAE Dirham, the PKR remained unchanged for both buying and selling, closing at 75.45 and 76.20, respectively.

Against Saudi Riyal, the PKR gained 5 paise for buying and 7 paise for selling, closing at 73.70 and 74.39, respectively.

Open-market rates for dollar on Monday

BID                            Rs 279.37

OFFER                      Rs 280.68