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 Tuesday.

At close, the currency settled at 278.32, a gain of Re0.10 against the US dollar.

On Monday, the rupee had settled at 278.42 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.

The IMF has not yet included Pakistan on the agenda of its executive board meetings scheduled till September 4.

Globally, the US dollar edged higher on Tuesday and major currencies traded sideways as lingering concerns over tensions in the Middle East partially offset investors’ optimism for imminent US interest rate cuts.

Geopolitical risks kept early currency moves subdued, though fears of an escalating conflict following Israel and Hezbollah’s major missile exchange over the weekend petered out.

Against a basket of currencies, the greenback was last 0.05% higher at 100.90, languishing near a 13-month low of 100.53 hit in the previous session.

The Fed’s aggressive rate-hike cycle and expectations of how much further U.S. rates could rise had been a huge driver of the dollar’s strength over the past two years, keeping other currencies, particularly the Japanese yen, under pressure.

Oil prices, a key indicator of currency parity, slipped slightly on Tuesday after rebounding more than 7% over the previous three sessions on supply concerns prompted by fears of widening Middle East conflict and potential shutdown of Libyan oil fields.

Brent crude futures were down 30 cents, or 0.4%, at $81.13 a barrel by 0819 GMT.

US West Texas Intermediate crude futures dropped 40 cents, or 0.5%, to $77.02.

Inter-bank market rates for dollar on Tuesday

BID                            Rs 278.32

OFFER                      Rs 278.52

Open-market movement

In the open market, the PKR lost 3.00 paisa for buying and remained unchanged for selling against USD, closing at 279.15 and 280.00, respectively.

Against Euro, the PKR gained 18.00 paisa for buying and 28.00 paisa for selling, closing at 309.97 and 311.94, respectively.

Against UAE Dirham, the PKR lost 4 paisa for buying and remained unchanged for selling, closing at 75.80 and 76.22, respectively.

Against Saudi Riyal, the PKR lost 1 paisa for buying and remained unchanged for selling, closing at 74.01 and 74.42, respectively.

Open-market rates for dollar on Tuesday

BID                            Rs 279.15

OFFER                      Rs 280.00