Rupee records 3rd consecutive gain, settles at 279.9 against US dollar

The rupee registered gains for the third consecutive session against the US dollar, appreciating 0.03% in the inter-bank market on Friday.

As per the State Bank of Pakistan (SBP), the rupee closed at 279.90, a gain of Re0.08 against the greenback.

On Thursday, the rupee registered a gain as well as it settled at 279.98 against the US dollar, according to the SBP.

Globally, the US dollar headed for a second weekly gain in a row on Friday on signs of resilience in the US economy and caution about rate cuts from central bankers.

Markets price a 57% chance of a US rate cut in March, down from 75% a week ago.

The dollar index is up 0.9% to 103.4 on the week and at 148.12 yen the dollar is up almost 5% on the Japanese currency this year as confidence that the Bank of Japan (BOJ) is about to hike rates has also been rattled.

Oil prices, a key indicator of currency parity, rose on Friday as geopolitical tensions and oil output disruptions in the US, the world’s biggest producer, caused by cold weather overshadowed concerns about slow Chinese demand growth and forecasts for ample supply.

Brent crude futures rose 2 cents to $79.12 a barrel by 0715 GMT, while US West Texas Intermediate crude futures (WTI) were up 13 cents to $74.21.

Both benchmarks climbed about 2% on Thursday as the International Energy Agency (IEA) joined the Organization of the Petroleum Exporting Countries (OPEC) in forecasting strong growth in global oil demand.

This week, WTI is on track to rise about 2% while Brent is set to gain 1%.

Inter-bank market rates for dollar on Friday

BID                            Rs 279.90

OFFER                      Rs 280.10

Open-market movement

In the open market, the PKR lost 47.00 paisa for buying and 23.00 paisa for selling against USD, closing at 278.82 and 280.98, respectively.

Against Euro, the PKR lost 21.00 paisa for buying and 19.00 paisa for selling, closing at 303.25 and 306.17, respectively.

Against UAE Dirham, the PKR lost 11.00 paisa for buying and 12.00 paisa for selling, closing at 76.18 and 76.91, respectively.

Against Saudi Riyal, the PKR lost 8.00 paisa for buying and 7.00 paisa for selling, closing at 74.33 and 75.00, respectively.

Open-market rates for dollar on Friday

BID                            Rs 278.82

OFFER                      Rs 280.98