Rupee Slightly Falls Against US Dollar
Published on: June 12, 2024.
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Pakistani Rupee Slightly Depreciates Against US Dollar
The Pakistani rupee experienced a marginal depreciation of 0.06% against the US dollar in the inter-bank market on Monday. The local unit settled at 278.37, reflecting a decline of Re0.17 against the greenback.
During the previous week, the rupee had strengthened slightly, gaining Re0.13 or 0.04% against the US dollar. According to the State Bank of Pakistan (SBP), the local unit closed at 278.20, compared to 278.33 from the previous week.
In recent weeks, the Pakistani rupee has mainly ranged between 277 and 279 against the dollar. This comes as Pakistan seeks a longer IMF bailout program, with ongoing discussions taking place virtually with authorities in Islamabad towards reaching a staff-level agreement (SLA) on a new program.
Internationally, the euro experienced a decline as French President Emmanuel Macron called a surprise election following a defeat in the European Union vote by the far-right. Meanwhile, the US dollar remained steady ahead of the Federal Reserve meeting later in the week.
US nonfarm payrolls expanded by 272,000 jobs in the previous month, surpassing economists’ expectations of 185,000. As a result, the dollar index, which measures the US currency against six rivals, reached 105.09, its highest level since May 30.
Oil prices saw a modest increase on Monday, buoyed by hopes of rising fuel demand during the summer. However, gains were limited due to the strengthening of the dollar and diminished expectations of immediate US interest rate cuts.
Goldman Sachs analysts predict that Brent crude, a key indicator of currency parity, will reach $86 a barrel in the third quarter. They believe that strong summer transport demand will lead to a deficit of 1.3 million barrels per day (bpd) in the oil market.
Inter-bank market rates for the US dollar on Monday:
- BID: Rs 278.37
- OFFER: Rs 278.57
In the open market, the Pakistani rupee lost 12 paise for buying and 9 paise for selling against the US dollar. It closed at 277.70 and 280.15, respectively.
The PKR gained 1.58 rupee for buying and 1.64 rupee for selling against the Euro, closing at 296.15 and 299.01, respectively.
Against the UAE Dirham, the PKR gained 2 paise for buying and 4 paise for selling, closing at 75.22 and 75.95, respectively.
Against the Saudi Riyal, the PKR gained 10 paise for buying and 8 paise for selling, closing at 73.39 and 74.09, respectively.
