Rupee slips lower against US dollar

The Pakistani rupee registered a minor fall against the US dollar, depreciating 0.06% in the inter-bank market on Wednesday.

At close, the currency settled at 278.52, a loss of Re0.18 against the US dollar.

On Tuesday, the rupee had settled at 278.34 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 positive indicators.

Globally, the US dollar slipped to its lowest this year versus the euro on Wednesday as traders braced for potentially crucial revisions to US payrolls data later in the day, ahead of a speech by Federal Reserve Chair Jerome Powell at the end of the week.

The US currency also dipped below the closely watched 145 yen level and hovered close to the more-than-one-year low to sterling reached overnight.

Pressure notably came from US bond yields, which hit their lowest since Aug. 5, when yields crashed to the a more-than-one-year trough after surprisingly soft monthly jobs figures sparked recession fear.

Powell’s keynote address on Friday at the Kansas City Fed’s Jackson Hole economic symposium will be parsed carefully for any hints on the likely size of a rate cut next month, and whether borrowing costs are likely to be lowered at each subsequent Fed meeting.

The US dollar index - which measures the currency against the euro, sterling, yen and three other major rivals - edged to a fresh low since Jan. 2 at 101.34 as of 0026 GMT, after dropping 0.5% or more in each of the previous three sessions.

Oil prices, a key indicator of currency parity, held broadly steady on Wednesday after a run of declines that have pushed Brent down to almost $77, driven by stubborn fears over Chinese demand and diminishing concerns about conflict spreading in the Middle East.

Brent crude futures were stable at $77.20 a barrel by 0806 GMT.

US West Texas Intermediate crude was at $73.10, down 7 cents.

Inter-bank market rates for dollar on Wednesday

BID                            Rs 278.52

OFFER                      Rs 278.72

Open-market movement

In the open market, the PKR gained 34 paise for buying and 20 paise for selling against USD, closing at 279.05 and 280.00, respectively.

Against Euro, the PKR lost 66 paise for buying and 85 paise for selling, closing at 308.21 and 310.50, respectively.

Against UAE Dirham, the PKR gained 9 paise for buying and 7 paise for selling, closing at 75.72 and 76.22, respectively.

Against Saudi Riyal, the PKR gained 6 paise for buying and 9 paise for selling, closing at 73.97 and 74.42, respectively.

Open-market rates for dollar on Wednesday

BID                            Rs 279.05

OFFER                      Rs 280.00