Interbank closing: PKR declines by 0.01 per cent against USD

WEB DESK: The Pakistani rupee (PKR) exhibited relative stability on Monday, depreciating by a marginal 0.01 per cent against the US dollar (USD) in the inter-bank market, according to the State Bank of Pakistan (SBP).

At the market’s close, the local currency settled at Rs278.24, down by just Re0.03 from the previous session.

This slight depreciation follows a week where the rupee experienced a minor gain against the US dollar. Last week’s closing rate was Rs278.21, an improvement from Rs278.39 the week prior, representing an appreciation of 0.06 per cent or Re0.18.

In a significant development, the International Monetary Fund (IMF) announced plans to send a mission to Pakistan later this month to discuss a new financial programme. The upcoming discussions are crucial as Pakistan embarks on its annual budget preparation for the next fiscal year.

This follows the completion of a $3-billion short-term programme with the IMF, which helped Pakistan avert a potential sovereign default. However, Prime Minister (PM) Shehbaz Sharif’s administration has stressed the necessity for a longer-term arrangement with the IMF to ensure financial stability.

Concurrently, oil prices experienced an uptick on Monday, driven by Saudi Arabia’s decision to raise June crude prices for most regions and the ongoing uncertainty in the Middle East.

As the likelihood of a ceasefire between Israel and Hamas appeared low, concerns about potential escalation in the key oil-producing region increased.

This increase in oil prices is an important indicator for the foreign exchange market, as fluctuations in oil prices can impact currency valuation.

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