Pakistani Rupee Slightly Weakens Against US Dollar
The Pakistani rupee experienced a small decrease against the US dollar, settling at 278.20 in the inter-bank market on Monday. This reflects a slight depreciation of 0.03%. At the close of trading, the rupee stood at 278.20 against the greenback, marking a decrease of Re0.08, as reported by the State Bank of Pakistan (SBP).
Last week, the rupee had shown a slight improvement, gaining Re0.09 or 0.03% against the US dollar. It closed at 278.12, compared to the previous week’s closing rate of 278.21 against the dollar.
Federal Finance Minister Muhammad Aurangzeb highlighted key government priorities, including enhancing the tax-to-GDP ratio, fast-tracking the privatization of state-owned enterprises (SOEs), and reforming the energy sector. He emphasized these points during a panel discussion at the Pre-Budget Conference held in Lahore.
In international markets, major currencies remained stable on Monday. The dollar held its ground against other currencies as investors awaited US inflation data to gauge the possibility of interest rate adjustments later in the year. Expectations for rate cuts have risen following a softer-than-expected US payrolls report for April and indications from the Federal Reserve.
Oil prices, which often influence currency movements, showed little change on Monday after a previous session’s decline. This followed signs that US policymakers might maintain higher interest rates for a longer period.
In the inter-bank market, the bid and offer rates for the dollar were Rs 278.20 and Rs 278.40, respectively.
Open Market Movement
In the open market, the Pakistani rupee experienced the following changes against major currencies:
- Against the US Dollar: Lost 36 paise for buying and 35 paise for selling, closing at Rs 277.01 and Rs 279.55, respectively.
- Against the Euro: Lost 65 paise for buying and 71 paise for selling, closing at Rs 296.64 and Rs 299.46, respectively.
- Against the UAE Dirham: Lost 4 paise for buying and 6 paise for selling, closing at Rs 75.15 and Rs 75.89, respectively.
- Against the Saudi Riyal: Lost 8 paise for buying and 9 paise for selling, closing at Rs 73.50 and Rs 74.19, respectively.
In the open market, the bid and offer rates for the dollar stood at Rs 277.01 and Rs 279.55, respectively, on Monday.