Rupee regains strength against US dollar

The Pakistani rupee marginally increased against the US dollar, appreciating 0.03% in the inter-bank market on Wednesday.

At close, the local unit settled at 279.5, a gain of Re0.07 against the greenback, as per the State Bank of Pakistan (SBP).

On Tuesday, the rupee slipped lower to settle at 279.57 against the US dollar, according to the SBP.

In a key development, Pakistan Muslim League-Nawaz (PML-N) and Pakistan Peoples Party (PPP) on Tuesday, reached an agreement to form a coalition government in the Centre.

The understanding was reached in a meeting of the senior leadership of the two parties, including PML-N president Shehbaz Sharif and PPP chairman Bilawal Bhutto Zardari followed by a joint presser, which was also joined by PPP co-chairman Asif Ali Zardari and other senior leaders of the two parties late on Tuesday.

Internationally, the US dollar fell broadly on Wednesday as it tracked a global decline in bond yields.

The greenback slipped below 150 yen in early Asia trade and last bought 149.93 yen, giving the Japanese currency some breathing space having been pinned near a three-month low in previous sessions.

The move lower in the dollar has come on the back of a dip in US Treasury yields in line with its global peers.

The US dollar index steadied at 104.05.

Oil prices, a key indicator of currency parity, regained some ground in Asian trade on Wednesday amid concerns over attacks on shipping in the Red Sea and growing expectations that cuts to US interest rates will take longer than thought.

Brent crude futures rose 24 cents or 0.3% to $82.58 a barrel by 0721 GMT, while US West Texas Intermediate crude futures (WTI) were up 21 cents or 0.3% at $77.25.

Inter-bank market rates for dollar on Wednesday

BID                            Rs 279.50

OFFER                      Rs 279.70

Open-market movement

In the open market, the PKR lost 13.00 paisa for buying and 12.00 paisa for selling against USD, closing at 279.80 and 282.44, respectively.

Against Euro, the PKR lost 1.06 rupee for buying and 1.02 rupee for selling, closing at 301.12 and 304.02, respectively.

Against UAE Dirham, the PKR gained 1.00 paisa for both buying and selling, closing at 76.13 and 76.88, respectively.

Against Saudi Riyal, the PKR lost 1.00 paisa for both buying and selling, closing at 74.35 and 75.04, respectively.

Open-market rates for dollar on Wednesday

BID                            Rs 279.80

OFFER                      Rs 282.44