Inter-bank: rupee sees minor recovery against US dollar

The Pakistani rupee registered a minor gain against the US dollar as it appreciated 0.04% in the inter-bank market on Tuesday.

As per the State Bank of Pakistan (SBP), the rupee settled at 285.52, an increase of Re0.12.

On Monday, the rupee registered marginal losses to settle at 285.64 against the US dollar.

Internationally, the US dollar ticked down to a three-month low against peer currencies on Tuesday after slipping overnight on weaker-than-expected new home sales data, while traders hunkered down on bets that the Federal Reserve could start cutting interest rates in the first half of next year.

US new home sales fell 5.6% to a seasonally adjusted annual rate of 679,000 units in October, data showed, below the 723,000 units expected by economists polled by Reuters and sending Treasury yields into a decline.

The dollar index, a measure of the greenback against a basket of currencies, was last at 103.11, its lowest since Aug. 31.

The dollar was track for a loss of more than 3% in November, its worst performance in a year.

Market expectation that the Fed’s rate increase cycle has finally come to an end has also put downward pressure on the greenback.

Oil prices, a key indicator of currency parity, rose on Tuesday with the Brent benchmark rising above $80 a barrel, supported by expectations that the OPEC+ producer group may deepen and extend output cuts due to concern over softer global demand.

OPEC+, which combines the Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia, will hold an online ministerial meeting on Thursday to discuss production targets for 2024.

Brent crude futures were up 72 cents, or 0.9%, at $80.70 a barrel at 0921 GMT. US West Texas Intermediate (WTI) crude futures gained 69 cents, or 0.9%, at $75.55.

Inter-bank market rates for dollar on Tuesday

BID                            Rs 285.50

OFFER                      Rs 285.70

Open-market movement

In the open market, the PKR remained unchanged for both buying and selling against USD, closing at 284.00 and 287.00, respectively.

Against Euro, the PKR remained unchanged for both buying and selling, closing at 310.00 and 313.00, respectively.

Against UAE Dirham, the PKR remained unchanged for both buying and selling, closing at 77.80 and 78.50, respectively.

Against Saudi Riyal, the PKR remained unchanged for both buying and selling, closing at 76.00 and 76.70, respectively.

Open-market rates for dollar on Tuesday

BID                            Rs 284.00

OFFER                      Rs 287.00