Pakistan rupee registers gain against US dollar

The Pakistani rupee registered gain against the US dollar, appreciating 0.01% in the inter-bank market on Wednesday.

At close, the local currency settled at 279.72, a gain of Re0.03 against the greenback.

On Tuesday, the local unit closed at 279.75.

The US dollar was steady on Wednesday as investors remained cautious after a partial government shutdown swiftly ended while the yen wobbled near a two-week low ahead of what is shaping up to be an unpredictable, opens new tab national election over the weekend.

The currency markets were still digesting Kevin Warsh’s nomination by US President Donald Trump as the next Federal Reserve chief, with the dollar broadly firming on expectations that Warsh is unlikely to push for rapid rate cuts.

Investors have also been relieved as the appointment eased some of the concerns over the Fed’s independence after Trump’s constant attacks on the central bank and current Fed Chair Jerome Powell.

The euro was at $1.1814 in early trading, while sterling stood at $1.3693, steady ahead of policy meetings at the European Central Bank and the Bank of England on Thursday.

Both central banks are expected to stand pat on rates.

The dollar index , which measures the greenback against six major currencies, was at 97.43, not far from the one-week high of 97.73 it touched on Monday. The index fell 1% in January after dropping 9.4% last year.

Oil prices, a key indicator of currency parity, rose on Wednesday after the US shot down an Iranian drone and armed Iranian boats approached a US-flagged vessel, rekindling fears of an escalation between Washington and Tehran ahead of planned talks.

Brent crude oil futures were up 46 cents, or 0.7%, at $67.79 a barrel by 1034 GMT. US West Texas Intermediate crude was up 52 cents, or 0.8%, at $63.73.

Both benchmarks have seesawed this week between news of talks to de-escalate tensions between the United States and Iran and heightened fears of potential disruption to oil flows through the Strait of Hormuz.

Inter-bank market rates for dollar on Wednesday

BID Rs 279.72

OFFER Rs 279.92

Open-market movement

In the open market, the PKR lost 1bpaisa for buying and gained 4 paise for selling against USD, closing at 280.25 and 280.76, respectively.

Against Euro, the PKR lost 41 paise for buying and 14 paise for selling, closing at 330.96 and 333.88, respectively.

Against UAE Dirham, the PKR gained 1 paisa for buying and lost 1 paisa for selling, closing at 76.49 and 77.20, respectively.

Against Saudi Riyal, the PKR remained unchanged for both buying and selling, closing at 74.82 and 75.37, respectively.

Open-market rates for dollar on Wednesday

BID Rs 280.25

OFFER Rs 280.76