Rupee registers minor gain against US dollar

The Pakistani rupee registered a marginal gain against the US dollar, appreciating 0.04% in the inter-bank market on Wednesday.

At close, the local unit settled at 278.40, a gain of Re0.10 against the greenback.

On Tuesday, the rupee had closed at 278.50 after a gain of Re0.12.

In recent weeks, the domestic currency has largely been around 277-279 against the dollar as Pakistan moves forward with its plan to win a longer and larger International Monetary Fund (IMF) bailout programme.

Globally, the US dollar was firm on Wednesday and trading on the precipice of the 160 yen barrier as investors turned cautious and counted down to the release of US price data at the end of the week.

At 159.71 per dollar, the yen’s level has markets on alert since that is only a whisker shy of where Japanese authorities likely stepped in to buy yen in April.

Markets are banking that Friday’s US data shows annual growth in the Federal Reserve’s favoured core personal consumption expenditure index slowed to 2.6% in May, the lowest in more than three years and opening the way to rate cuts.

Policymakers, however, continue to signal they are in no rush, with Fed Governors Lisa Cook and particularly Michelle Bowman stressing that decisions will depend on data.

Oil prices, a key indicator of currency parity, were stable on Wednesday at around $85 a barrel for Brent crude, amid forecasts for an eventual inventory drawdown during the third quarter peak summer demand season and geopolitical risks from the Middle East conflict.

Brent crude oil futures slipped 9 cents, or 0.11%, to $84.92 a barrel by 1315 GMT. U.S. West Texas Intermediate crude futures shed 7 cents, or 0.09%, to $80.76 a barrel.

The American Petroleum Institute (API) on Tuesday reported U.S. crude oil stocks rose by 914,000 barrels last week, market sources said. Still, analysts on average expected them to decline by 2.9 milllion barrels in official inventory data from the Energy Information Administration, due at 1430 GMT.

Inter-bank market rates for dollar on Wednesday

BID                            Rs 278.40

OFFER                      Rs 278.60

Open-market movement

In the open market, the PKR remained unchanged for both buying and selling against USD, closing at 277.66 and 280.27, respectively.

Against Euro, the PKR gained 90 paise for buying and 91 paise for selling, closing at 294.54 and 297.44, respectively.

Against UAE Dirham, the PKR remained unchanged for both buying and selling, closing at 75.10 and 75.83, respectively.

Against Saudi Riyal, the PKR remained unchanged for buying and gained 1 paisa for selling, closing at 73.09 and 73.79, respectively.

Open-market rates for dollar on Wednesday

BID                            Rs 277.66

OFFER                      Rs 280.27