Rupee sees 6th successive gain, settles at 281.13 against US dollar

The Pakistani rupee maintained its upward trajectory against the US dollar for the sixth successive session, appreciating a marginal 0.03% in the inter-bank market on Wednesday.

As per the State Bank of Pakistan (SBP), the rupee settled at 281.13 after an increase of Re0.09.

On Tuesday, the rupee had registered a marginal gain to settle at 281.22 against the US dollar.

Globally, the US dollar was steady on Wednesday in cautious trading ahead of US inflation data due later this week that is likely to influence the Federal Reserve’s policy, while bitcoin was volatile after a fake social media post rattled markets.

The US securities regulator said someone briefly accessed its X social media account and posted a fake message saying it had approved exchange-traded funds (ETFs) for bitcoin.

The Securities and Exchange Commission (SEC) said it had not yet approved spot bitcoin ETFs.

Bitcoin surged to a fresh 21-month peak of $47,897 after the fake post, before sliding down to below $45,000 within minutes as the SEC deleted and disavowed the information.

In the currency market, the dollar remained on the front foot, with the dollar index, which measures the US currency against six rivals, last at 102.53, after gaining 0.215% on Tuesday.

The index is up 1% this month, after dropping 2% in December as traders reassess how steep and early the rate cuts from the Fed are likely to be.

The Fed’s surprising dovish tilt in December, when it projected 75 basis points (bps) of rate cuts in 2024, turbo-charged market expectations of easing with traders last month anticipating as much as 160 bps of cuts.

Oil prices, a key indicator of currency parity, steadied on Wednesday, giving up earlier gains, as Middle East supply concerns arising from the Israel-Hamas war and the shutdown of a top Libyan oilfield balanced worries about weak economic growth.

A report from industry group, the American Petroleum Institute, showed a bigger-than-expected drop in crude inventories in the world’s biggest oil consumer, but this was offset by rising supplies of refined products.

Brent crude futures fell 23 cents, or 0.3%, to $77.36 a barrel at 0913 GMT, while US West Texas Intermediate crude futures slipped 15 cents, or 0.2%, to $72.09.

Inter-bank market rates for dollar on Wednesday

BID                            Rs 281.13

OFFER                      Rs 281.33

Open-market movement

In the open market, the PKR gained 28.00 paisa for buying and 16.00 paisa for selling against USD, closing at 279.79 and 282.18, respectively.

Against Euro, the PKR gained 26.00 paisa for buying and 14.00 paisa for selling, closing at 305.94 and 308.86, respectively.

Against UAE Dirham, the PKR gained 7.00 paisa for buying and 7.00 paisa for selling, closing at 76.33 and 77.03, respectively.

Against Saudi Riyal, the PKR gained 3.00 paisa for buying and 4.00 paisa for selling, closing at 74.60 and 75.27, respectively.

Open-market rates for dollar on Wednesday

BID                            Rs 279.79

OFFER                      Rs 282.18