Rupee registers marginal gain against US dollar

The Pakistani rupee recorded a minor gain against the US dollar, appreciating 0.01% in the inter-bank market on Wednesday.

At close, the local unit settled at 278.04, up by Re0.04 against the greenback, as per the State Bank of Pakistan (SBP).

On Tuesday, the rupee registered marginal improvement to settle at 278.08 against the US dollar, according to the SBP.

In a key development, the Board of Directors of Pakistan International Airlines Corporation Limited (PIACL) has taken a significant step towards the privatisation of the national carrier by approving a Scheme of Arrangement (SoA) in its 83rd meeting.

This decision, aimed at restructuring the airline, was sanctioned along with its ancillary modalities and is set to be filed with the Securities and Exchange Commission of Pakistan (SECP).

Globally, the US dollar climbed on Wednesday in the wake of more strong US economic data, nudging the Japanese yen to a 34-year low and into the zone that drew official market intervention in 2022.

The US dollar index is up 3% for the quarter to 104.4. Sterling was steady at $1.2621 and was broadly steady for the quarter, too, down just 0.8%.

Oil prices, a key indicator of currency parity, fell for a second day on Wednesday after a report that crude stockpiles in the US, the world’s biggest oil user, surged and on signs major producers are unlikely to change their output policy at a technical meeting next week.

Brent crude futures for May dropped 74 cents, or 0.9%, to $85.51 a barrel at 0420 GMT.

The May contract is set to expire on Thursday and the more actively traded June contract declined 68 cents, or 0.8%, at $84.95. US West Texas Intermediate (WTI) crude futures for May delivery fell 64 cents, or 0.8%, at $80.98.

Prices have retreated this week since climbing to their highest since October last week and remain about 3% above the average closing price in the first week of March.

Inter-bank market rates for dollar on Wednesday

BID                            Rs 278.04

OFFER                      Rs 278.24

Open-market movement

In the open market, the PKR remained unchanged for buying and gained 7 paisa for selling against USD, closing at 278.06 and 280.60, respectively.

Against Euro, the PKR gained 43 paisa for buying and 41 paisa for selling, closing at 299.27 and 302.20, respectively.

Against UAE Dirham, the PKR remained unchanged for buying and gained 2 paisa for selling, closing at 75.45 and 76.14, respectively.

Against Saudi Riyal, the PKR remained unchanged for both buying and selling, closing at 73.69 and 74.38, respectively.

Open-market rates for dollar on Wednesday

BID                            Rs 278.06

OFFER                      Rs 280.60