Rupee sees marginal decline against US dollar

The Pakistani rupee registered a marginal decline, depreciating 0.04% against the US dollar in the inter-bank market on Monday.

At close, the local unit settled at 278.50, a loss of Re0.12 against the greenback, according to the State Bank of Pakistan (SBP).

During the previous week, the rupee remained largely stable against the US dollar in the previous week, consolidating its position around the 277-279 mark where it has traded for a number of months.

At the end of the week, the rupee had settled at 278.38, according to the SBP, only marginally lower than 278.34 where it began on Tuesday.

In a key development, Finance Minister Muhammad Aurangzeb said Pakistan will keep seeking financial assistance packages from the International Monetary Fund (IMF) if it does not significantly boost its tax revenues.

Globally, the euro slipped on Monday after projections from France’s election pointed to a hung parliament amid an unexpectedly strong showing for a left-wing alliance, spawning fresh uncertainty over the country’s fiscal outlook.

The US dollar remained on the back foot following surprisingly soft US payrolls data on Friday, which boosted bets for the Federal Reserve to start cutting interest rates as early as September.

The dollar index, which measures the US currency against the euro, sterling, yen and three other major rivals, was flat at 104.97, licking its wounds after a 0.9% slump last week, exacerbated by Friday’s softer US jobs market reading.

Traders currently set about 76% odds for a rate cut at the Fed’s September meeting, up from 64% a week ago, according to the CME Group’s FedWatch Tool.

The dollar slipped 0.07% to 160.70 yen, down from as high as 161.96 on Wednesday.

Oil prices, a key indicator of currency parity,slid on Monday after rising for four weeks, as the prospect of a ceasefire deal in Gaza eased tensions in the Middle East, while investors assessed potential disruption to US energy supplies from Hurricane Beryl.

Brent crude futures were down 49 cents, or 0.57%, at $86.05 a barrel, as at 0843 GMT.

US West Texas Intermediate (WTI) crude was at $82.53 a barrel, down 63 cents, or 0.76%.

Talks over a US ceasefire plan aimed at ending the nine-month-old war in Gaza are under way and being mediated by Qatar and Egypt.

Inter-bank market rates for dollar on Monday

BID                            Rs 278.50

OFFER                      Rs 278.70

Open-market movement

In the open market, the PKR lost 8 paise for buying and remained unchanged for selling against USD, closing at 278.73 and 280.50, respectively.

Against Euro, the PKR lost 1 paisa for buying and remained unchanged for selling, closing at 299.25 and 302.10, respectively.

Against UAE Dirham, the PKR lost 3 paise for buying and 2 paise for selling, closing at 75.41 and 76.15, respectively.

Against Saudi Riyal, the PKR lost 1 paisa for buying and 2 paise for selling, closing at 73.65 and 74.35, respectively.

Open-market rates for dollar on Monday

BID                            Rs 278.73

OFFER                      Rs 280.50