Rupee registers marginal improvement against US dollar

The Pakistani rupee registered a marginal gain against the US dollar, appreciating 0.03% in the inter-bank market on Friday.

At close, the local unit settled at 278.12, a gain of Re0.08 against the greenback, as per the State Bank of Pakistan (SBP).

On Thursday, the rupee closed at 278.20, down by Re0.10.

In a key development, the inflows of workers’ remittances increased by 27.9% on year-on-year basis to $2.8 billion during April 2024.

Cumulatively, with an inflow of $23.8 billion, workers’ remittances increased by 3.5% during the first 10 months of FY24 compared to the same period last year, State Bank of Pakistan (SBP) said on Thursday.

Internationally, the US dollar had a soft tone in early Asian trading on Friday after losing ground overnight to the euro and sterling on the back of U.S. data showing further signs of a cooling labour market and hence higher odds of Fed rate cuts this year.

The dollar index, which measures the greenback against a basket of currencies including the yen and the euro, was flat at 105.25.

The dollar’s retreat followed data showing a jump in initial claims for US state unemployment benefits which, coming on top of last week’s weak payrolls report, furthered risk-taking in a market that has been vacillating for weeks on when and how much the Federal Reserve will cut rates this year.

Alongside a light rally in US Treasuries and commodities, most major currencies rose, including a yen that has been hobbled by its low yields and sterling which had appeared vulnerable after a dovish Bank of England policy review

Oil prices, a key indicator of currency parity, rose on Friday, continuing upwards trend on the signs of improving economy in China and as negotiations to halt hostilities in the stand-off between Israel and Hamas yielded no results.

Brent futures rose 37 cents, or 0.4%, to $84.24 a barrel, while US West Texas Intermediate crude grew 41 cents, or 0.5%, to $79.64 at 0003 GMT.

In the previous session, oil prices edged up to a one-week high on data of rising crude oil imports in China in April and as investors saw the cooling US job market as an indication of possible interest rate cuts.

Inter-bank market rates for dollar on Friday

BID                            Rs 278.12

OFFER                      Rs 278.32

Open-market movement

In the open market, the PKR lost 7 paisa for buying and 14 paisa for selling against USD, closing at 276.64 and 279.25, respectively.

Against Euro, the PKR lost 1.22 rupee for buying and 1.33 rupee for selling, closing at 296.33 and 299.20, respectively.

Against UAE Dirham, the PKR lost 10 paisa for buying and 9 paisa for selling, closing at 75.10 and 75.80, respectively.

Against Saudi Riyal, the PKR lost 10 paisa for both buying and selling, closing at 73.40 and 74.07, respectively.

Open-market rates for dollar on Friday

BID                            Rs 276.64

OFFER                      Rs 279.25