(CTN News) – For the fifth session in a row, the Pakistani rupee strengthened versus the US dollar, rising 0.36% on Monday in the inter-bank market.
According to the State Bank of Pakistan (SBP), the rupee increased by Re0.94, settling at 261.88 versus the US dollar. Despite the advances, the currency has lost 21.4% of its value from the US dollar this fiscal year.
The rupee gained 2.45% over the previous week to end at 262.82 versus the US dollar, purportedly aided by the realization of export revenues and a stronger influx of remittances via legal channels.
The SBP also noted a marginal gain in foreign currency reserves for the week, which came in at $3.19 billion.
But until the International Monetary Fund (IMF) program is revived, the market expects any good movement in the currency to be fleeting.
— SBP (@StateBank_Pak) February 20, 2023
The solid run of economic statistics from the US on Monday helped the dollar gain ground globally, and traders predict that the Federal Reserve will continue to tighten monetary policy longer than anticipated.
Market expectations have increased that the US central bank has more work to do in taming inflation and that interest rates will need to rise as a result of a flood of data coming out of the largest economy in the world in recent weeks that point to a still-tight labor market, sticky inflation, strong retail sales growth, and higher monthly producer prices.
The US dollar index increased by 0.05% to 104.03 and is already up about 2% for the month, on pace to post its first monthly gain since late September.
After settling down $2 a barrel on Friday, oil prices, a major measure of currency parity, were little changed in early Asian trading on Monday as increased supply in the United States and predictions of more interest rate rises dampened hopes for a turnaround in China’s demand.
Inter-bank market rates for dollar on Tuesday
BID Rs 261.85
INVOICE Rs 263.85
The PKR appreciated 25 paisa for purchasing and selling versus the USD on the open market, with the currency ending at 264.75 and 267.75, respectively.
The PKR’s closing prices for purchasing and selling against the Euro were 278.50 and 281.50, respectively.
The PKR decreased 10 paisa while purchasing UAE Dirham and did not move when selling it, finishing at 72.80 and 73.50, respectively.
The PKR lost 20 paisa while purchasing and selling Saudi Riyals, closing at 70.00 and 70.70, respectively.
Open-market rates for the dollar on Tuesday
BID Rs 264.75
OFFER 267.75 RS
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