Rupee registers improvement against US dollar

The Pakistani rupee reported marginal improvement, appreciating 0.01% against the US dollar in the inter-bank market on Tuesday.

At close, the local currency settled at 280.07, a gain of Re0.03 against the greenback.

On Monday, the local unit closed at 280.10.

Internationally, the US dollar retreated for a second day in Asian trading on Tuesday, as market jitters from US military action in Venezuela eased and dovish comments from Fed officials spurred risk-taking on Wall Street.

The dollar index, which measures its strength against a basket of six currencies, was last trading at 98.216, down 0.2% and extending losses after snapping a four-day winning streak on Monday.

Financial markets are settling down after the shock US capture of Venezuelan President Nicolas Maduro over the weekend sparked volatility in commodity markets. Maduro pleaded not guilty to narcotics charges in a Manhattan federal court on Monday.

Against the yen, the US dollar was last off 0.1% at 156.255 yen, with the greenback weakening slightly following an auction of 10-year Japanese government bonds, which drew demand in line with the average over the past year.

The greenback retreated after hitting the highest levels in a month during Monday’s trading session, as US manufacturing activity contracted more than expected in December and fell to a 14-month low.

Expectations of policy easing edged up after his remarks, though Fed funds futures are still pricing an implied 82.8% probability that interest rates will remain on hold at the US central bank’s next meeting on January 27 to 28, compared to an 83.4% chance on Friday, according to the CME Group’s FedWatch tool.

Oil prices, a key indicator of currency parity, rose on Tuesday as the market weighed expectations of ample global supply this year against uncertainty around Venezuelan crude output after the U.S. capture of President Nicolas Maduro.

Brent crude futures gained 46 cents, or 0.74%, to $62.22 a barrel by 1407 GMT while U.S. West Texas Intermediate crude rose 41 cents, or 0.7%, to $58.73.

Inter-bank market rates for dollar on Tuesday

BID                            Rs 280.07

OFFER                      Rs 280.27

Open-market movement

In the open market, the PKR gained 3.00 paisa for buying and 5.00 paisa for selling against USD, closing at 280.47 and 281.10, respectively.

Against Euro, the PKR lost 1.13 rupee for buying and 1.20 rupee for selling, closing at 328.30 and 331.45, respectively.

Against UAE Dirham, the PKR gained 3.00 paisa for buying and 1.00 paisa for selling, closing at 76.47 and 77.24, respectively.

Against Saudi Riyal, the PKR lost 2.00 paisa for buying and gained 1.00 paisa for selling, closing at 74.82 and 75.41, respectively.

Open-market rates for dollar on Tuesday

BID                            Rs 280.47

OFFER                      Rs 281.10