Pakistan's rupee maintained its upward trajectory against the US dollar for the seventh straight session on Monday, closing over 0.5% higher in the inter-bank market.
As per the State Bank of Pakistan (SBP), the rupee closed at 227.29 after appreciating Rs1.16 or 0.51%. In the last seven trading sessions, the rupee has cumulatively appreciated Rs12.41 or 5.45%.
During the previous week, the rupee gained nearly 5%, appreciating in value across all the five sessions against the US dollar as the return of Ishaq Dar at helm of Pakistan’s economic affairs gave impetus to bullish sentiment in the money market.
6th successive gain: Rupee closes the week at 228.45 against US dollar
The rupee closed at 228.45 in the inter-bank market on Friday as the US dollar index, which measures the greenback against the euro, sterling and four other major peers, also moved lower.
Analysts said the return of Dar, widely seen as an advocate of a strong rupee, and measures taken by the SBP also reduced speculation activity, evident also by the hefty gains posted by the local currency in the open market.
Moreover, the central bank in a move to promote documentation and transparency in the foreign exchange transactions, made it mandatory that the Pakistan Rupee consideration of currency exchange (CE) transactions between Exchange Companies (ECs), Exchange Companies “B” category and franchises of Exchange Companies are conducted through bank accounts.
“The ongoing appreciation drive of rupee is sentiment based,” Samiullah Tariq, Head of Research at Pak Kuwait Investment Company Limited, told Business Recorder.
“The expectations of loan disbursements from multilateral and bilateral institutions and relaxation of loan conditions by international lenders are also driving the positive sentiment,” he said.
Moreover, the central bank’s latest move is also playing a role as well, said Tariq.
Internationally, the dollar maintained its grip against other currencies. The US dollar index rose 0.06% to 112.30. So far this year, the dollar index has soared almost 17%.
Oil prices, a key indicator of currency parity, jumped almost $4 on Monday as OPEC+ considers reducing output by more than 1 million barrels per day (bpd) to buttress prices with what would be its biggest cut since the start of the COVID-19 pandemic.
Inter-bank market rates for dollar on Monday
BID Rs 227.30
OFFER Rs 228.30
Open-market movement
In the open market, the PKR remained unchanged for both buying and selling against USD, closing at 228 and 230, respectively.
Against Euro, the PKR gained one rupee for both buying and selling, closing at 224 and 226 respectively.
Against UAE Dirham, the PKR lost 30 paisas for both buying and selling, closing at 63 and 63.50, respectively.
Against Saudi Riyal, the PKR gained 30 paisas for buying and 40 paisas for selling, closing at 60.50 and 61, respectively.
Open-market rates for dollar on Monday
BID Rs 228
OFFER Rs 230