Interbank closing: PKR starts April with one paisa gain

WEB DESK: On Monday, the Pakistani rupee (PKR) demonstrated resilience in the inter-bank market, maintaining stability against the US dollar (USD).

According to the State Bank of Pakistan (SBP), the local currency closed at Rs277.94, registering a marginal uptick of Re0.01 compared to the previous session.

Throughout the previous week, the rupee exhibited a modest increase, advancing by Re0.19 or 0.07% against the US dollar in the inter-bank market.

Concluding the week at Rs277.95, the rupee demonstrated a slight improvement from its previous closing of Rs278.14 against the greenback.

In a notable development, the federal government announced a significant hike in petrol prices, effective from April 1, 2024, imposing additional financial strain on the general public.

The increase, amounting to up to Rs9.66 per litre, is attributed to a rise in premium from $12.15 per barrel to $13.507 per barrel, marking a $1.45 increment per barrel.

Ahead of Eid-ul-Fitr, the government opted to fully pass on the impact of increased petrol prices to the masses, resulting in petrol prices surpassing those of high-speed diesel (HSD).

Consequently, the price of petrol escalated from Rs279.75 to Rs289.41 per litre.

Internationally, the US dollar exhibited stability on Monday, supported by data indicating a moderation in US prices, which strengthened expectations of potential interest rate cuts by the Federal Reserve in June.

Meanwhile, the yen remained near 152 per dollar, keeping traders cautious amid concerns about potential intervention.