Rupee largely stable against US dollar

The Pakistani rupee remained largely stable, depreciating 0.01% against the US dollar in the inter-bank market on Wednesday.

At close, the local unit settled at 278.40, a decline of Re0.02 against the greenback, according to the State Bank of Pakistan (SBP).

On Tuesday, the local unit settled at 278.38 against the US dollar.

In a key development, the government said on Tuesday that after conclusion of an agreement with the International Monetary Fund (IMF) this month or next month, a comprehensive reforms agenda would be placed before the nation to increase the tax-to-GDP ratio to 14% as well as increase in export and investment rate.

Globally, the US dollar remained on the back foot on Wednesday after dovish comments from Federal Reserve Chair Jerome Powell sent US bond yields lower, overshadowing a strong domestic jobs report.

The euro held firm, helped by a stubbornly high local inflation reading on Tuesday. Sterling was steady ahead of Thursday’s U.K. election.

However, the yen continued to languish close to a 38-year low versus the dollar, amid the increased possibility of a second Donald Trump presidency, which could likely lead to higher long-term Treasury yields.

The dollar index, which measures the currency against the euro, sterling, yen and three other major peers, was little changed at 105.66 early in the Asian session, after a 0.14% retreat in the previous session.

Oil prices, a key indicator of currency parity, steadied on Wednesday after trading higher as industry data showed a bigger-than-expected draw in US crude stockpiles, with gains capped by economic headwinds from China and the euro zone.

Brent crude futures inched up 7 cents, or 0.08%, to $86.31 per barrel at 0925 GMT.

US West Texas Intermediate crude futures gained 5 cents or 0.06% to $82.86 per barrel.

On Tuesday, both benchmarks rose to their highest since the end of April but closed down on the day as fears faded that Hurricane Beryl would disrupt production in the Gulf of Mexico.

Inter-bank market rates for dollar on Wednesday

BID Rs 278.20

OFFER Rs 278.40

Open-market movement

In the open market, the PKR lost 16.00 paisa for buying and 5.00 paisa for selling against USD, closing at 277.70 and 280.25, respectively.

Against Euro, the PKR lost 27.00 paisa for buying and 21.00 paisa for selling, closing at 295.17 and 298.02, respectively.

Against UAE Dirham, the PKR lost 1.00 paisa for buying and remained unchanged for selling, closing at 75.01 and 75.74, respectively.

Against Saudi Riyal, the PKR gained 1.00 paisa for buying and lost 1.00 paisa for selling, closing at 73.20 and 73.90, respectively.

Open-market rates for dollar on Wednesday

BID Rs 277.70

OFFER Rs 280.25