Rupee registers marginal gain against US dollar

The Pakistani rupee registered some improvement against the US dollar, appreciating 0.06% in the inter-bank market on Friday.

At close, the currency settled at 278.54, a gain of Re0.16, against the greenback.

On Thursday, the local unit had closed at 278.70 against the greenback, according to the State Bank of Pakistan (SBP).

In recent months, the domestic currency has largely been around 277-279 against the dollar as traders keep an eye on some strong positive indicators.

Internationally, the US dollar hovered near a two-week high to the yen after its biggest one-day gain against major peers in four weeks as firm US economic data all but eliminated fears about a recession.

The greenback was especially strong against the Japanese currency thanks to a surge in Treasury yields as traders pared back bets the Federal Reserve would be forced into aggressive easing next month.

Risk-sensitive currencies like sterling were firm as the improved economic outlook spurred a rally in equities.

The dollar index, which measures the greenback against six major peers including the yen, sterling and euro, was little changed at 103.20 after rallying 0.41% overnight, the most since July 18.

Oil prices, a key indicator of currency parity, were set for a second straight week of gains despite edging lower on Friday, as recent US economic data boosted optimism about demand from the world’s top oil consumer.

Brent crude futures have risen about 1.5% this week, while US West Texas Intermediate crude futures have increased about 1.3%.

On Friday, Brent fell 15 cents, or 0.19%, to $80.89 per barrel by 0810 GMT, while WTI fell 25 cents, or 0.32%, to $77.91.

Inter-bank market rates for dollar on Friday

BID                            Rs 278.54

OFFER                      Rs 278.74

Open-market movement

In the open market, the PKR gained 5 paise for buying and remained unchanged for selling against USD, closing at 279.40 and 280.40, respectively.

Against Euro, the PKR gained 87 paise for buying and 73 paise for selling, closing at 305.76 and 307.21, respectively.

Against UAE Dirham, the PKR gained 5 paise for buying and remained unchanged for selling, closing at 75.87 and 76.35, respectively.

Against Saudi Riyal, the PKR gained 5 paise for buying and remained unchanged for selling, closing at 74.08 and 74.55, respectively.

Open-market rates for dollar on Friday

BID                            Rs 279.40

OFFER                      Rs 280.40