Rupee registers minor gain against US dollar

The Pakistani rupee registered slight improvement against the US dollar, appreciating 0.03% in the inter-bank market on Monday.

At close, the currency settled at 278.42, a gain of Re0.08 against the US dollar.

During the previous week, the rupee appreciated marginally as it gained Re0.04 or 0.01% against the US dollar.

The local unit had closed at 278.50, against 278.54 it had closed the week earlier 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 and approval from the International Monetary Fund’s (IMF) Executive Board over a new $7-billion Extended Fund Facility.

Globally, the Japanese yen rose to a three-week high against the US dollar on Monday as Federal Reserve Chair Jerome Powell’s emphatic dovish shift contrasted sharply with Bank of Japan chief Kazuo Ueda’s steadfastly hawkish tone.

The US currency hovered near its lowest in 13 months against the euro.

It also sagged closer to levels last seen in March 2022 versus sterling, with Bank of England head Andrew Bailey’s comments that it was “too early to declare victory” over inflation signalling a less aggressive stance on interest rate cuts than the Fed.

The US dollar sank as much 0.59% to 143.56 yen for the first time since Aug. 5 in the early hours of Monday before last trading down 0.25%.

The dollar index - which measures the currency against a basket of six major peers, including the euro, sterling and yen - languished at 100.64, just off the 13-month low of 100.60 reached at the end of last week.

Oil prices, a key indicator of currency parity, rose 1% on Monday on renewed concerns that an escalating Gaza conflict could disrupt regional oil supplies, extending gains from Friday when the prospect of US interest rate cuts lifted the global economic and fuel demand outlook.

Brent crude futures climbed 79 cents, or 1%, to $79.81 a barrel by 0910 GMT, while US crude futures were at $75.63 a barrel, up 80 cents, or 1.07%.

Inter-bank market rates for dollar on Monday

BID                            Rs 278.42

OFFER                      Rs 278.62

Open-market movement

In the open market, the PKR gained 3 paise for buying and remained unchanged for selling against USD, closing at 279.12 and 280.00, respectively.

Against Euro, the PKR lost 98 paise for buying and 1.48 rupee for selling, closing at 310.15 and 312.22, respectively.

Against UAE Dirham, the PKR gained 3 paise for buying and remained unchanged for selling, closing at 75.76 and 76.22, respectively.

Against Saudi Riyal, the PKR gained 2 paise for buying and remained unchanged for selling, closing at 74.00 and 74.42, respectively.

Open-market rates for dollar on Monday

BID                            Rs 279.12

OFFER                      Rs 280.00