Pakistani rupee records 24th successive gain against US dollar

Rupee's Performance Against US Dollar Since 04 March 2025

The Pakistani rupee maintained its positive momentum against the US dollar, appreciating marginally in the inter-bank market on Wednesday.

At close, the rupee settled at 281.60, a gain of Re0.01 against the greenback. This was the rupee’s 24th straight gain against the greenback.

On Tuesday, the local unit closed at 281.61.

Globally, the US dollar was steady on Wednesday as traders braced for crucial inflation reports this week that could help define the size and scope of interest rate cuts from the Federal Reserve for next week and beyond.

After a dismal jobs report last week cemented expectations of the Fed lowering borrowing costs at its September 16-17 policy meeting, the only question for investors is whether the magnitude of the cut would be 25 basis points or 50 basis points.

Much of that will depend on the extent of tariffs’ impact on prices in the world’s largest economy. US producer price inflation data is due on Wednesday, followed by the consumer price inflation report on Thursday.

Traders are fully pricing in a 25 bps cut next week and have ascribed a 5% chance to a 50 bps reduction. They anticipate 66 bps of easing this year.

The dollar index, which measures the US currency against six other units, was steady at 97.834 after gaining 0.3% on Tuesday. The index is down about 10% in 2025 as erratic US trade policies and rate cut expectations dented the dollar’s appeal.

Oil prices, a key indicator of currency parity, rose on Wednesday after Israel attacked Hamas leadership in Qatar, Poland shot down drones, and the US made a push for new sanctions on buyers of Russian oil, but concerns over crude oversupply capped further gains.

Brent crude futures were up 56 cents, or 0.8%, at $66.95 a barrel, as of 0835 GMT, and US West Texas Intermediate crude futures gained 56 cents, or 0.9%, to $63.19 a barrel.

Prices had settled up 0.6% in the previous trading session after Israel said it had attacked Hamas leadership in Doha.

Both benchmarks rose nearly 2% shortly after the attack, but then retraced much of their gains.

Inter-bank market rates for dollar on Wednesday

BID                            Rs 281.60

OFFER                      Rs 281.80

Open-market movement

In the open market, the PKR gained 12 paise for buying and 10 paise for selling against USD, closing at 282.13 and 282.80, respectively.

Against Euro, the PKR gained 1.03 rupee for buying and 70 paise for selling, closing at 331.41 and 334.89, respectively.

Against UAE Dirham, the PKR lost 8 paise for buying and 18 paise for selling, closing at 77.29 and 78.03, respectively.

Against Saudi Riyal, the PKR lost 5 paise for buying and 3 paise for selling, closing at 75.45 and 76.01, respectively.

Open-market rates for dollar on Wednesday

BID                            Rs 282.13

OFFER                      Rs 282.80