The Pakistani rupee remained largely stable against the US dollar, depreciating 0.01% in the inter-bank market on Monday.
At close, the currency settled at 277.66, a loss of Re0.02 against the greenback.
The rupee weakened marginally during the previous week as it depreciated Re0.12 or 0.04% against the US dollar. According to the State Bank of Pakistan (SBP), the local unit closed at 277.64, compared to 277.52 it had closed the week earlier against the greenback.
The International Monetary Fund (IMF) in its staff report, released last week, warned that Pakistan’s capacity to repay the Washington-based lender was subject to significant risks, adding that the country remained critically dependent on policy implementation and timely external financing.
Globally, the US dollar extended its gains in early Monday trades in Asia as a holiday in Japan sapped liquidity, leaving China’s somewhat disappointing weekend stimulus announcements the focus of market attention.
The dollar index was at 103.10, up a touch and closing in on last week’s peak, its highest since mid-August, on the back of traders reducing bets on further jumbo rate cuts by the Federal Reserve at its remaining meetings this year.
Having fallen to a year-to-date low of 100.15 late last month, the dollar index has found support from expectations that the Federal Reserve will deliver a 25-basis-point rate cut next month, not the 50bp that it had opted for in September.
Oil prices, a key indicator of currency parity, on Monday wiped out all of last week’s gains as China’s stimulus plans failed to inspire confidence among investors, while the market remained on edge about potential Israeli attacks on Iranian oil infrastructure.
Brent crude futures were down $1.35, or 1.7%, at $77.69 per barrel by 0902 GMT, while US West Texas Intermediate crude futures fell $1.32, or 1.75%, to $74.24 per barrel.
Brent gained 99 cents last week, while WTI climbed $1.18. China’s deflationary pressures worsened in September, according to official data released on Saturday.
Inter-bank market rates for dollar on Monday
BID Rs 277.66
OFFER Rs 277.86
Open-market movement
In the open market, the PKR gained 29 paise for buying and 10 paise for selling against USD, closing at 277.86 and 279.35, respectively.
Against Euro, the PKR gained 40 paise for buying and 38 paise for selling, closing at 301.45 and 304.30, respectively.
Against UAE Dirham, the PKR gained 3 paise for buying and remained unchanged for selling, closing at 75.25 and 75.97, respectively.
Against Saudi Riyal, the PKR gained 2 paisa for both buying and selling, closing at 73.45 and 74.11, respectively.
Open-market rates for dollar on Friday
BID Rs 277.86
OFFER Rs 279.35
American Dollar Exchange Rate