April,03(A. E Report)—— Pakistani rupee stayed under pressure against US dollar, depreciating 0.44% in the inter-bank market on Monday.
According to State Bank of Pakistan (SBP), the rupee settled at 285.04, a loss of Rs1.25.
During the previous week, the rupee had depreciated a marginal 0.21% to settle at 283.79 as a slightly higher level of foreign exchange reserves kept the downside pressure at bay even without a revival of the International Monetary Fund (IMF) programme.
However, reserves held by the SBP remain at less than one month of import cover, underscoring the need for resumption of the programme.
Experts believe the currency will likely remain under pressure, especially since a cut in oil production could boost the commodity’s prices, impacting the current account of countries like Pakistan.
Globally, the US dollar started the week higher as fears over inflation resurfaced after a surprise announcement by major oil producers to cut production further, with traders wagering the Federal Reserve may need to increase interest rates at its next meeting.
The dollar index, which measures the US dollar against six peers, was last at 102.77, aiming to break through 103 for the first time in a week.
Oil prices, a key indicator of currency parity, surged on Monday, jolted by a surprise announcement by OPEC+ to cut production further in what top producer Saudi Arabia called a precautionary measure to support market stability.
The OPEC and their allies including Russia shook markets by announcing production cuts of about 1.16 million barrels per day on Sunday.
Pakistan Rupee Exchange Rate