Rupee largely stable against US dollar

The Pakistani rupee remained largely stable against the US dollar in the inter-bank market on Thursday.

At close, the local unit settled at 277.93, down by Re0.01 against the greenback, as per the State Bank of Pakistan (SBP).

On Wednesday, the rupee registered a marginal loss to settle at 277.92 against the US dollar, according to the SBP.

Internationally, the US dollar was pinned beneath recent peaks on Thursday with traders taking remarks from Federal Reserve Chair Jerome Powell as reassuring on the likelihood of interest rate cuts this year while waiting for the latest US labour market readout.

An unexpected slowdown in US services growth also supported cut expectations and weighed on the dollar, though for the year so far it remains the best-performing G10 currency as those expectations are far more modest than three months ago.

The US dollar index, up 2.8% this year as market expectations for more than 160 basis points of US rate cuts have been sliced in half, was last at 104.22.

Oil prices, a key indicator of currency parity, rose slightly on Thursday on concerns of lower supply as major producers are keeping output cuts in place and on signs of stronger economic growth in the US, the world’s biggest oil consumer.

Brent futures for June rose 4 cents to $89.39 a barrel at 0651 GMT.

US West Texas Intermediate (WTI) futures for May rose 2 cents to $85.45 a barrel.

A meeting of top ministers from the Organization of Petroleum Exporting Countries and its allies (OPEC+) including Russia, kept oil supply policy unchanged on Wednesday and pressed some countries to boost compliance with output cuts.

Inter-bank market rates for dollar on Thursday

BID                            Rs 277.93

OFFER                      Rs 278.13

Open-market movement

In the open market, the PKR gained 23.00 paisa for buying and 21.00 paisa for selling against USD, closing at 277.16 and 279.77, respectively.

Against Euro, the PKR lost 1.98 rupee for buying and 1.90 rupee for selling, closing at 299.09 and 301.84, respectively.

Against UAE Dirham, the PKR remained unchanged for buying and lost 1.00 paisa for selling, closing at 75.31 and 76.04, respectively.

Against Saudi Riyal, the PKR gained 5.00 paisa for buying and remained unchanged for selling, closing at 73.24 and 73.98, respectively.

Open-market rates for dollar on Thursday

BID                            Rs 277.16

OFFER                      Rs 279.77