7th consecutive decline: rupee ends losing more than 50 paisa against dollar

WEB DESK: In the seventh consecutive session, the Pakistani rupee faced a decline against the US dollar, dropping by 0.18 per cent in the inter-bank market on Tuesday, according to the State Bank of Pakistan (SBP).

The PKR settled at Rs281.47, marking a decrease of Re0.52 compared to the previous session’s rate of Rs280.95.

Interbank closing #ExchangeRate for todayhttps://t.co/WThGvUMTHS#SBPExchangeRate pic.twitter.com/3mMwVVkQyF

— SBP (@StateBank_Pak) October 31, 2023

Simultaneously, the Monetary Policy Committee (MPC) of the State Bank of Pakistan (SBP) opted to maintain the key policy rate at 22 per cent on Monday, aligning with the broader market consensus.

The committee, acknowledging the expected rise in headline inflation for September 2023, projected a decline in October and anticipated a downward trend, particularly in the latter half of the fiscal year, as stated in a press release.

On the global front, the US dollar strengthened by 0.7 per cent against the Japanese yen, surpassing the 150 per dollar mark briefly, reaching an intraday low of 150.12 before partially recovering to 149.95.

Read more: Pakistan stock market closes near 52,000 mark

Furthermore, the dollar index showed a 0.22 per cent increase, standing at 106.39. Analysts attributed this stability to the potential for another rate hike by the Federal Reserve, given the resilient nature of the US economy.

In the context of currency parity, oil prices experienced a rebound in Asian trade on Tuesday.

This followed a previous session’s 3 per cent drop, driven by concerns over supply disruptions due to conflicts in the Middle East, which overshadowed discouraging economic data from China.

December Brent crude futures, set to expire on the same day, rose by 65 cents, or 0.74 per cent, reaching $88.10 a barrel by 0637 GMT.