Rupee largely stable, settles at 281.11 against US dollar

The Pakistani rupee maintained its positive momentum against the US dollar for the seventh consecutive session, appreciating a marginal 0.01% in the inter-bank market on Thursday.

As per the State Bank of Pakistan (SBP), the rupee settled at 281.11 after an increase of Re0.02.

On Wednesday, the rupee had registered a marginal gain to settle at 281.13 against the US dollar.

Globally, the US dollar was becalmed as traders waited on US inflation data to see whether bets on rate cuts were justified.

The dollar has steadied in early 2024 after sliding through the latter months of 2023 as the Federal Reserve indicated it was finished with rate hikes and traders priced in steep cuts.

While that pricing has moderated slightly, futures still show that market sees 140 basis points (bps) of cuts this year and a 2/3 chance they begin as soon as March - a view that could be challenged if inflation surprises on the high side.

New York Fed President John Williams said on Wednesday that it’s still too soon to call for rate cuts as the central bank still has distance to go getting inflation back to 2%.

Core inflation is seen falling to 3.8% year on year for December, its slowest since early 2021.

Oil prices, a key indicator of currency parity,rose on Thursday after an oil tanker was boarded by an armed group in Oman, raising the prospect of escalating conflict in the Middle East.

Brent crude futures gained $1.03, or 1.3%, to $77.83 a barrel by 0916 GMT and US West Texas Intermediate crude futures rose 98 cents, or 1.4%, to $72.35, though gains were capped by a surprise build in US crude stockpiles.

Inter-bank market rates for dollar on Thursday

BID                            Rs 281.11

OFFER                      Rs 281.31

Open-market movement

In the open market, the PKR gained 12.00 paisa for buying and 24.00 paisa for selling against USD, closing at 279.67 and 281.94, respectively.

Against Euro, the PKR lost 28.00 paisa for buying and 24.00 paisa for selling, closing at 306.22 and 309.10, respectively.

Against UAE Dirham, the PKR gained 3.00 paisa for buying and 4.00 paisa for selling, closing at 76.30 and 76.99, respectively.

Against Saudi Riyal, the PKR gained 6.00 paisa for buying and 7.00 paisa for selling, closing at 74.54 and 75.20, respectively.

Open-market rates for dollar on Thursday

BID                            Rs 279.67

OFFER                      Rs 281.94