On Monday, the Pakistani rupee saw a slight depreciation of 0.04% against the US dollar in the inter-bank market. The currency settled at 278.64 PKR, marking a loss of Re0.10.
Inter-Bank Market Rates
| Currency | BID | OFFER |
|---|---|---|
| US Dollar | 278.64 PKR | 278.84 PKR |
Previous Week’s Performance The rupee had a marginal decline last week as well, depreciating by Re0.04 or 0.01% against the US dollar. It closed at 278.54 PKR compared to 278.50 PKR the week before, according to the State Bank of Pakistan (SBP).
In recent months, the domestic currency has fluctuated between 277-279 PKR against the dollar. This variation is partly due to positive indicators and expectations regarding the International Monetary Fund’s (IMF) Executive Board approval of a new $7-billion Extended Fund Facility (EFF).
Global Dollar Movement Globally, the US dollar reached a two-week high against the euro on Monday. This rise was influenced by reduced expectations of aggressive policy easing by the Federal Reserve and anticipation of a crucial U.S. jobs report later in the week.
The dollar advanced to its strongest level since August 21 against the yen, buoyed by increased long-term Treasury yields. This was in response to a steady U.S. inflation measure, which diminished the need for a significant rate cut by the Fed.
The dollar index, which measures the dollar against major currencies, edged up to 101.79 early in the Asian trading session, a level last seen on August 20.
Economists forecast the addition of 165,000 jobs in August, up from 114,000 in the previous month, with the unemployment rate expected to decrease to 4.2%.
Oil Prices Impact Oil prices, a key indicator for currency parity, fell on Monday due to anticipated higher OPEC+ production starting in October and concerns about sluggish demand growth in China and the US.
- Brent Crude Futures: Down by 21 cents (0.3%) at $76.72 per barrel
- US West Texas Intermediate Crude: Down by 14 cents (0.2%) at $73.41 per barrel
Brent and WTI had previously lost 1.4% and 3.1%, respectively, on Friday.
Open-Market Exchange Rates
| Currency | BID | OFFER |
|---|---|---|
| US Dollar (PKR) | 278.97 PKR | 279.75 PKR |
| Euro (PKR) | 307.15 PKR (Buying) | 308.52 PKR (Selling) |
| UAE Dirham (PKR) | 75.85 PKR (Buying) | 76.16 PKR (Selling) |
| Saudi Riyal (PKR) | 74.10 PKR (Buying) | 74.36 PKR (Selling) |
In the open market, the PKR lost 2 paise for buying the US dollar and remained unchanged for selling. It closed at 278.97 PKR for buying and 279.75 PKR for selling.
For other currencies:
- The PKR gained 61 paise for buying and 52 paise for selling against the Euro.
- The PKR lost 6 paise for buying against the UAE Dirham and remained unchanged for selling.
- The PKR lost 5 paise for buying against the Saudi Riyal and remained unchanged for selling.
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