Rupee's Performance Against US Dollar Since 04 March 2025
The Pakistani rupee posted further gain against the US dollar, appreciating 0.01% in the inter-bank market on Tuesday.
At close, the currency settled at 281.32, a gain of Re0.03 against the greenback.
On Monday, the local unit closed at 281.35.
Pakistan’s finance ministry on Tuesday projected consumer inflation for September to remain in a 3.5-4.5% range, citing flood-related disruptions caused by recent floods. “Despite the disruption caused by recent floods, economic activity has remained broadly stable,” the Ministry of Finance said in its monthly outlook.
Internationally, the US dollar was on the back foot on Tuesday in cautious trading as investors braced for a possible US government shutdown that would halt economic data releases, including the crucial jobs report later this week.
Government funding will expire at midnight on Tuesday unless Republicans and Democrats agree to a last-minute temporary spending deal, with President Donald Trump and his opponents making little progress at a White House meeting.
The payrolls report, crucial for decision-making by policymakers at the Federal Reserve, is scheduled for Friday, and a delay could leave the central bank flying blind on the labour market.
Federal Reserve Bank of New York President John Williams said on Monday that emerging signs of weakness in the labor market drove his support for cutting interest rates at the most recent central bank meeting.
Traders are currently pricing in 42 basis points of Fed easing by December and a total of 104 basis points by the end of 2026, about 25 bps less than levels seen in mid-September.
That could put the dollar in a vulnerable position in the near term, with the broader US currency index, which has dropped 9.7% this year, easing a bit to 97.948 in early Asian hours.
Oil prices, a key indicator of currency parity, slipped on Tuesday as investors braced for a supply surplus due to potential OPEC+ plans for a larger output hike next month and the resumption of oil exports from Iraq’s Kurdistan region via Turkey.
Brent crude futures for November delivery, expiring on Tuesday, fell 94 cents, or 1.38%, to $67.03 a barrel by 11:15 am EDT (1515 GMT). The more active December contract fell $1.11 or 1.65% to $65.98.
US West Texas Intermediate crude was $62.35 a barrel, down $1.10, or 1.73%.
Inter-bank market rates for dollar on Tuesday
BID Rs 281.32
OFFER Rs 281.51
Open-market movement
In the open market, the PKR lost 5 paise for buying and gained 5 paise for selling against USD, closing at 281.92 and 282.35, respectively.
Against Euro, the PKR lost 3 paise for buying and 1 paisa for selling, closing at 330.48 and 333.60, respectively.
Against UAE Dirham, the PKR gained 1 paisa for buying and 2 paise for selling, closing at 76.88 and 77.65, respectively.
Against Saudi Riyal, the PKR gained 3 paise for both buying and selling, closing at 75.08 and 75.73, respectively.
Open-market rates for dollar on Tuesday
BID Rs 281.92
OFFER Rs 282.35
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