Rupee registers minor gain against US dollar

The Pakistani rupee registered marginal improvement, appreciating 0.02% against the US dollar in the inter-bank market on Tuesday.

At close, the local unit settled at 278.30, a gain of Re0.06 against the greenback, as per the State Bank of Pakistan (SBP).

On Monday, the rupee had closed at 278.36, down by Re0.03.

In recent weeks, the domestic currency has largely been around 277-278 against the dollar as Pakistan moves forward with its plan to win a longer and longer International Monetary Fund (IMF) bailout programme.

Globally, the US dollar languished at its lowest since March against the euro and sterling on Tuesday as signs of a softening US economy boosted the case for earlier Federal Reserve interest rate cuts.

The US currency also slumped to its weakest in 2 1/2 months versus the Swiss franc after data showed a second straight month of slowdown in manufacturing activity and an unexpected decline in construction spending.

The dollar index, which measures the currency against the euro, sterling, swissie, yen and two more major peers, was little changed at 104.08, after earlier dipping below 104 for the first time since April 9.

Oil prices, a key indicator of currency parity, fell more than $1 on Tuesday, extending losses from a four-month low in the previous session, as investors worried about supply rising later in the year amid signs of weakening US demand.

Brent crude futures fell $1.14 cents, or 1.5%, to $77.22 a barrel at 0825 GMT.

Brent on Monday closed below $80 for the first time since Feb. 7, after falling more than 3%.

US West Texas Intermediate crude futures eased $1.23 cents, or 1.7%, to $72.99 a barrel. WTI on Monday fell by 3.6% to settle near a four-month low.

Inter-bank market rates for dollar on Tuesday

BID                            Rs 278.30

OFFER                      Rs 278.50

Open-market movement

In the open market, the PKR remained unchanged for buying and lost 5 paise for selling against USD, closing at 277.18 and 279.59, respectively.

Against Euro, the PKR lost 1.27 rupee for buying and 1.35 rupee for selling, closing at 300.53 and 303.50, respectively.

Against UAE Dirham, the PKR gained 1 paisa for buying and remained unchanged for selling, closing at 75.26 and 75.98, respectively.

Against Saudi Riyal, the PKR gained 2 paise for buying and remained unchanged for selling, closing at 73.51 and 74.20, respectively.

Open-market rates for dollar on Tuesday

BID                            Rs 277.18

OFFER                      Rs 279.59