Rupee largely stable against US dollar

The Pakistani rupee remained largely unchanged as it appreciated a marginal 0.01% against the US dollar in the inter-bank market on Thursday.

At close, the local unit settled at 279.48 after a gain of Re0.02 against the greenback, as per the State Bank of Pakistan (SBP).

On Wednesday also, the rupee had registered a marginal increase to settle at 279.5 against the US dollar, according to the SBP.

In a key development, the interim government on Wednesday approved a substantial raise in ex-depot price of petrol, ie, by Rs13.55 per litre and high speed diesel (HSD) by Rs2.75 per litre for the fortnight starting February 1, 2024 ahead of general elections on February 8.

Globally, the US dollar hovered close to the highest level in seven weeks against the euro on Thursday, after Federal Reserve Chair Jerome Powell pushed back on the idea of a first US interest rate cut as soon as March.

The US dollar index, which measures the currency against a basket of six major peers including the euro and yen, slipped 0.07% to 103.54 in early Asian trading, giving back a little of Wednesday’s 0.19% advance.

It remains close to the recent high of 103.82 touched on Monday of this week and Tuesday of last week, and previously not seen since Dec. 13.

The dollar has been buoyed by US economic data suggesting the Fed can wait longer before cutting interest rates. Powell gave the currency another push overnight by calling a cut in March “not the base case.”

Oil prices, a key indicator of currency parity, rose on Thursday, supported by signals from the US Federal Reserve on a possible start to rate cuts and on new support measures for China’s embattled property market.

Brent crude futures climbed 58 cents to $81.13 a barrel and US West Texas Intermediate crude futures gained 59 cents to $76.44 at 0919 GMT, after falling by more than $2 a barrel in the previous session.

Inter-bank market rates for dollar on Thursday

BID                            Rs 279.48

OFFER                      Rs 279.68

Open-market movement

In the open market, the PKR lost 23 paisa for buying and 22 paisa for selling against USD, closing at 279.10 and 281.08, respectively.

Against Euro, the PKR gained 54 paisa for buying and 32 paisa for selling, closing at 300.92 and 303.75, respectively.

Against UAE Dirham, the PKR lost 6 paisa for buying and 10 paisa for selling, closing at 76.24 and 76.97, respectively.

Against Saudi Riyal, the PKR lost 3 paisa for buying and 2 paisa for selling, closing at 74.38 and 75.02, respectively.

Open-market rates for dollar on Thursday

BID                            Rs 279.10

OFFER                      Rs 281.08