Rupee largely stable against US dollar

The Pakistani rupee remained largely stable against the US dollar on Monday, depreciating 0.03% in the inter-bank market.

At close, the currency settled at 277.71, a loss of Re0.07 against the US dollar.

During the previous week, the rupee made further improvement as it gained Re0.20 or 0.07% against the US dollar.

The local unit closed at 277.64 against 278.84 it had closed the week earlier against the greenback, according to the State Bank of Pakistan (SBP).

During the previous week, Pakistan received the first tranche of Special Drawing Rights (SDR) 760 million, equivalent to $1.03 billion, from the International Monetary Fund (IMF).

In a key development, Finance Minister Muhammad Aurangzeb stated Sunday that Pakistan economy’s “DNA needed to be fundamentally changed” to ensure that the latest IMF agreement is the country’s final one. The minister also stated that Pakistan must declare a “nuclear war” against the cash-based economy as part of the reforms.

Globally, the US dollar slipped on commodity currencies underpinned by investor expectations of a turnaround in China’s economy.

Last week the US Federal Reserve’s favoured inflation measure showed inflation running at a pretty benign 2.2% for the 12 months to August, sending US yields and the dollar lower.

Oil prices, a key indicator of currency parity, rose for a second consecutive session on Monday, with concerns escalating over potential supply disruptions in the Middle East after Israel stepped up attacks on Palestinian group Hamas and Iranian-backed forces in the region.

Brent crude futures for November delivery gained $1.12, up 1.56% to $73.10 a barrel as of 0611 GMT.

That contract expires on Monday, and the more-active contract for December delivery climbed $1.04, or 1.45%, to $72.58. US West Texas Intermediate crude futures advanced 93 cents, or 1.36%, to $69.11 a barrel.

Inter-bank market rates for dollar on Monday

BID                            Rs 277.71

OFFER                      Rs 277.91

Open-market movement

In the open market, the PKR gained 1 paisa for buying and 21 paise for selling against USD, closing at 278.25 and 279.94, respectively.

Against Euro, the PKR lost 63 paise for buying and 62 paise for selling, closing at 308.83 and 311.73, respectively.

Against UAE Dirham, the PKR remained unchanged for buying and gained 1 paisa for selling, closing at 75.36 and 76.07, respectively.

Against Saudi Riyal, the PKR remained unchanged for both buying and selling, closing at 73.61 and 74.28, respectively.

Open-market rates for dollar on Monday

BID                            Rs 278.25

OFFER                      Rs 279.94