Markets

Rupee sees minor decline against US dollar

  • Currency settles at 278.61 against the greenback in inter-bank market
Published July 11, 2024

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

At close, the currency settled at 278.61, a loss of Re0.10 against the greenback.

On Wednesday, the local unit had settled at 278.51 against the US dollar.

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 fell a touch on Thursday although moves were largely subdued ahead of a U.S. inflation report due later in the day, while sterling firmed on receding expectations for an August rate cut from the Bank of England (BoE).

In the broader market, the dollar was on the back foot, though currencies were mostly trading sideways as investors were hesitant to take on fresh positions ahead of the U.S. inflation report.

Against the greenback, the euro gained 0.04% to $1.0834, and the Aussie dollar rose 0.01% to $0.6754.

The dollar was little changed at 104.95 against a basket of currencies.

Expectations are for core inflation in the US to have risen 0.2% on a monthly basis in June, putting the annual figure at 3.4%.

Oil prices, a key indicator of currency parity, were stable on Thursday with the Brent benchmark holding above $85 a barrel, as investors balanced a bleaker demand growth view from the International Energy Agency (IEA) with a indications of growing US consumption.

Brent futures were up by 21 cents, or 0.25% to $85.29 a barrel by 0938 GMT.

US West Texas Intermediate (WTI) crude rose 13 cents, or 0.16%, to $82.23.

Inter-bank market rates for dollar on Thursday

BID                            Rs 278.61

OFFER                      Rs 278.81

Open-market movement

In the open market, the PKR lost 5 paise for buying and gained 5 paise for selling against USD, closing at 279.00 and 280.50, respectively.

Against Euro, the PKR lost 73 paise for buying and 79 paise for selling, closing at 300.07 and 302.96, respectively.

Against UAE Dirham, the PKR lost 6 paise for buying and 5 paise for selling, closing at 75.61 and 76.34, respectively.

Against Saudi Riyal, the PKR lost 6 paise for buying and 7 paise for selling, closing at 73.86 and 74.56, respectively.

Open-market rates for dollar on Thursday

BID                            Rs 279.00

OFFER                      Rs 280.50

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