After witnessing a volatile ride last week, the Pakistani rupee remained largely stable against the US dollar, appreciating 0.04% in the inter-bank market on Monday.
At close, the rupee finished with an increase of Re0.11 to settle at 284.97 against the US dollar.
During the previous week, the rupee underwent a volatile ride, seeing a record low of almost 299 before a dramatic U-turn saw it recover all its losses.
On Friday, the currency closed at 285.08 against the US dollar in the inter-bank market, a week-on-week fall of just 0.52%, but not before it had lost nearly 3% a day earlier and nearly 2% on Wednesday.
In a key development, the International Monetary Fund (IMF) said on Sunday it hopes a peaceful way forward is found, a remark that comes as Pakistan wrestles with a simmering political crisis at a time of severe economic distress.
The IMF also stressed that staying within the policy framework agreed for the review and sufficient financing from partners remain key to regaining macroeconomic stability, amid reports that the government’s action plan would wither in the face of rising political noise.
Separately, the Washington-based lender said the amount of financing necessary to ensure Pakistan stays current on external payments has remained unchanged throughout discussions under the ninth review.
Globally, the US dollar rose to a five-week high against major peers on Monday as the safe-haven currency benefited from inflation worries at home and growth concerns globally, extending gains after its biggest weekly increase since September.
The greenback was buoyed by a rise in Treasury yields after a survey of U.S. consumers’ long-term inflation expectations jumped to the highest since 2011, putting a possible Federal Reserve rate hike next month back in play.
The dollar index, which measures the currency against six major peers, reached 102.75 for the first time since April 10 in early Asian trading before then easing slightly to 102.63. It rallied 1.4% last week.
Oil prices, a key indicator of currency parity, fell on Monday as concerns about fuel demand in the top global oil consumers, the United States and China, offset bullish sentiment about tightening supplies from OPEC+ cuts and a resumption in US buying for reserves.
Inter-bank market rates for dollar on Monday
BID Rs 285.00
OFFER Rs 287.00
Open-market movement
In the open market, the PKR lost 2 rupees for both buying and selling against USD, closing at 288 and 291, respectively.
Against Euro, the PKR gained 3 rupees for both buying and selling, closing at 314 and 317 respectively.
Against UAE Dirham, the PKR gained 80 paisa for buying and 90 paisa for selling, closing at 79.70 and 80.40, respectively.
Against Saudi Riyal, the PKR gained 50 paisa for buying and 55 paisa for selling, closing at 77.50 and 78.20, respectively.
Open-market rates for dollar on Monday
BID Rs 288
OFFER Rs 291