April,17(E. A Report)—Pakistani rupee couldn’t sustain its three-session winning streak against the US dollar by taking a dip of 0.11 percent in the inter-bank market on Monday.
According to the State Bank of Pakistan (SBP), local currency settled at 284.71, a decrease of Re0.31.
US dollar bounced from a one-year low on start of week as resilience in core US retail sales, a rise in short-term inflation expectations and impressive Wall Street bank earnings raised market expectations for an interest rate hike in May.
During the previous week, the rupee had depreciated a marginal 0.09% against the US dollar on account of recovery on the final two days.
News of a $2-billion inflow from Saudi Arabia and another $1 billion from the UAE had helped market sentiment with the rupee settling at 284.4 on Friday, as assurances of funds from friendly countries are seen as crucial for the revival of the International Monetary Fund (IMF) bailout programme.
However, on Saturday, the IMF said it is still looking forward to obtaining necessary financing assurances as soon as possible to pave the way for the successful completion of the 9th Extended Fund Facility (EFF) review. Its statement implied that the staff-level agreement could still be a few steps away.
The agreement is seen as critical to providing much-needed stability to the currency market that has seen the rupee undergo volatile rides in recent months.
Meanwhile internationally, the
While US retail sales fell more than expected in March, the so-called core retail sales, which excludes automobiles, gasoline, building materials and food services, slipped just 0.3% last month, data released on Friday showed.
Against a basket of currencies, the US dollar index rose 0.15% to 101.82, standing some distance away from Friday’s one-year low of 100.78.
Pakistan Rupee Exchange Rate