Pakistan's rupee registered a marginal gain against the US dollar on Tuesday, settling at 213.9 in the inter-bank market. While the gain was lower in magnitude, the rupee managed to appreciate for the 11th successive session.
As per the State Bank of Pakistan (SBP), the currency settled at 213.90, an appreciation of 0.04% or Re0.08, against the greenback. The currency hit 212.69 during intra-day trading.
10th successive gain: Rupee closes near 214 against US dollar
The rupee has strengthened consistently since hitting its all-time low of 239.94 against the US dollar last month. In the last 11 sessions, the rupee has appreciated over 12%.
There has been an influx of positive news in recent days, leading to an improvement in the rupee value, with clarity on the International Monetary Fund (IMF) programme over the subsequent release of the $1.17 billion tranche boosting market sentiment.
Furthermore, Saudi Arabia's plan to renew its $3-billion deposit in assistance to Pakistan, while also intending to provide $100 million per month for 10 months in petroleum products, is likely to help maintain the momentum, said Trust Securities and Brokerage Limited (TSBL) in a note on Tuesday.
It was also reported that Prime Minister Shehbaz Sharif is likely to undertake a two-day (August 23-24) official visit to Qatar aimed at cementing existing bilateral relations and seal some agreements including deliberations on a new LNG deal.
“If materialised, it would help resolve the energy crisis and boost market sentiment,” said TSBL.
On Tuesday, Finance Minister Miftah Ismail said the government's measures to curb imports resulted in rupee's appreciation.
Oil prices, a key determinant of currency parity, had also settled lower on Monday after disappointing Chinese economic data renewed concerns of a global recession that would be expected to reduce fuel demand.
Inter-bank market rates for dollar on Tuesday
BID Rs 213.90
OFFER Rs 214.40
Open-market movement
In the open market, the PKR lost 3 rupees for both buying and selling against USD, closing at 211 and 213, respectively.
Against Euro, the PKR lost 2 rupees for both buying and selling, closing at 213 and 215 respectively.
Against UAE Dirham, the PKR lost 50 paisas for both buying and selling, closing at 57.20 and 57.70, respectively.
Against Saudi Riyal, the PKR lost 40 paisas for both buying and selling, closing at 56 and 56.50, respectively.
Open-market rates for dollar on Tuesday
BID Rs 211
OFFER Rs 213