Rupee Records Slight Gain Against US Dollar

Rupee Records Slight Gain Against US Dollar

The Pakistani rupee saw a marginal uptick against the US dollar in the inter-bank market on Monday, appreciating by 0.06%. Closing at 279.2 against the greenback, the local currency gained Re0.16 according to the State Bank of Pakistan (SBP).

Last week, the rupee remained steady at 279.36 against the dollar, maintaining the same rate as the preceding week in the inter-bank market.

Reports from Bloomberg News highlighted Pakistan’s intention to secure a new loan of at least $6 billion from the International Monetary Fund (IMF) to address upcoming debt repayments. The country aims to negotiate an Extended Fund Facility with the IMF, with talks expected to commence in March or April.

Globally, the US dollar showed strength, anticipating key economic releases that could impact the global interest rate landscape. Investors awaited the US inflation reading, particularly focusing on the core personal consumption expenditures (PCE) price index, slated for Thursday. Expectations pointed towards a 0.4% increase on a monthly basis. The dollar index edged up by 0.04% to reach 104.01.

Oil prices, often indicative of currency trends, experienced a decline on Monday amid concerns that higher-than-expected inflation might delay cuts to high-interest rates, constraining global fuel demand. Brent crude futures dropped by 39 cents to $81.23 a barrel, while US West Texas Intermediate crude futures (WTI) fell by 34 cents to $76.15.

In the inter-bank market, the dollar rates stood at Rs 279.20 (BID) and Rs 279.40 (OFFER) on Monday.

Open market movements showed the Pakistani rupee losing ground against the US dollar, with a decrease of 2.00 paisa for buying and 5.00 paisa for selling, closing at 279.64 and 282.28, respectively. Similar losses were observed against other major currencies such as the Euro, UAE Dirham, and Saudi Riyal.


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