Rupee remains largely stable against US dollar

Rupee's Performance Against US Dollar Since 23 Jan 2025

The Pakistani rupee remained largely stable against the US dollar, depreciating 0.01% in the inter-bank market on Thursday.

At close, the currency settled at 280.23, a fall of Re0.02 against the greenback.

On Wednesday, the rupee had closed at 280.21.

Globally, the US dollar was softer on Thursday after the Federal Reserve indicated interest rate cuts were likely later this year even as uncertainty around US tariffs weighed, while the pound hit a four-month high ahead of the Bank of England’s policy decision.

US policymakers projected likely two quarter-point interest rate cuts later this year, the same median forecast as three months ago, even as they expect slower economic growth and higher inflation.

On Wednesday, the Fed held its benchmark overnight rate steady in the 4.25%-4.50% range.

With UK inflation stuck firmly above its 2% target, the BoE has cut borrowing costs by less than the European Central Bank and the Fed since last summer, contributing to the country’s sluggish growth rate.

Elsewhere, Turkiye lira tumbled to a record low of 42 per dollar before recouping most of the day’s losses on Wednesday, after authorities detained President Tayyip Erdogan’s main political rival.

After weakening to a record low of 42 per dollar on Wednesday, the lira closed at 37.665 per dollar, a 2.6% decline.

Oil prices, a key indicator of currency parity, rose on Thursday, boosted by a strong outlook for demand in the United States after fuel inventories fell more than expected, and a weaker US dollar. Brent crude futures rose 43 cents, or 0.6%, to stand at $71.21 a barrel by 0423 GMT, their highest level since March 3.

US West Texas Intermediate crude (WTI) gained 38 cents, or 0.6%, to $67.54.

Inter-bank market rates for dollar on Thursday

BID                            Rs 280.22

OFFER                      Rs 280.42

Open-market movement

In the open market, the PKR gained 17 paise for buying and lost 1 paisa for selling against USD, closing at 279.95 and 282.07, respectively.

Against Euro, the PKR gained 83 paise for both buying and selling, closing at 304.31 and 307.44, respectively.

Against UAE Dirham, the PKR gained 3 paise for buying and remained unchanged for selling, closing at 76.20 and 76.80, respectively.

Against Saudi Riyal, the PKR gained 2 paise for buying and 1 paisa for selling, closing at 74.69 and 75.28, respectively.

Open-market rates for dollar on Thursday

BID                            Rs 279.95

OFFER                      Rs 282.07