Pakistan rupee records gain against US dollar
- Currency settles at 277.12 against greenback
The Pakistani rupee marginally appreciated against the US dollar, closing at 277.12, as the Finance Minister met with an IMF mission for facility reviews.
- Pakistani rupee's marginal appreciation against the dollar.
- Finance Minister's meeting with the IMF mission.
- International dollar strength and rising US Treasury yields.
The Pakistani rupee extended its marginal gains against the US dollar, appreciating 0.01% in the interbank market on Tuesday.
The local unit closed the day at 277.12, a gain of Re0.03 against the greenback.
On Monday, the Pakistani rupee settled at 277.15 against the dollar.
Finance Minister Muhammad Aurangzeb held a kick-off meeting with the International Monetary Fund (IMF) mission on Tuesday, read a statement released by the Ministry of Finance.
“The IMF mission is in Islamabad for the fourth review of Pakistan’s Extended Fund Facility (EFF) arrangement and the third review of the Resilience and Sustainability Facility (RSF),” it said.
Internationally, the US dollar hovered near a two-month high on Tuesday as volatile oil prices and a rapid climb in Treasury yields lent support, although gains were limited as traders awaited US data this week for clues on the Federal Reserve’s rate path.
The euro traded near its weakest level in three months at $1.1367 after the European Central Bank’s chief signalled measured steps to quell inflation. Sterling was steady at $1.3248, also not far from a three-month trough.
The dollar index, which measures the US currency against a basket of peers, was a touch higher at 101.2 and on track for a 1.8% advance this month, its best performance since June.
Meanwhile, a deepening selloff in US Treasuries pushed yields to new peaks, with the 10-year benchmark at its highest since 2007 and the 30-year at its highest since 2004.
The monetary policy-sensitive two-year yield also rose to its highest in more than two years, closing in on 5%.
US data releases later in the week, including the PCE price index on Wednesday and nonfarm payrolls on Friday, are both expected to support the case for further Fed rate hikes.
Markets are now seeing a more than 70% chance of a rate hike from the Federal Reserve at the end of October, up from 57% a week ago, according to CME Group’s FedWatch tool.
Oil prices, a key indicator of currency parity, declined on Tuesday as investors focused on signs of recovering crude exports from the Middle East and lingering concerns over potential supply disruptions in the region stemming from the US-Israeli war on Iran.
Brent crude futures were down $1.96, or 1.86%, to $103.32 a barrel at 1306 GMT. US West Texas Intermediate crude was at $90.65, down $1.95, or 2.11%.
Inter-bank market rates for dollar on Tuesday
BID Rs 277.12
OFFER Rs 277.32
Open-market movement
In the open market, the PKR gained 12 paise for buying and 8 paise for selling against USD, closing at 278.05 and 279.15, respectively.
Against Euro, the PKR gained 76 paise for buying and 71 paise for selling, closing at 315.51 and 318.65, respectively.
Against UAE Dirham, the PKR remained unchanged for buying and gained 2 paise for selling, closing at 75.70 and 76.28, respectively.
Against Saudi Riyal, the PKR gained 1 paisa for buying and 2 paise for selling, closing at 74.02 and 74.52, respectively.
Open-market rates for dollar on Tuesday
BID Rs 278.05
OFFER Rs 279.15