Rupee gains further ground against US dollar

The Pakistani rupee made further improvement against the US dollar on Friday, appreciating 0.03% in the inter-bank market.

At close, the currency settled at 277.84, a gain of Re0.07 against the US dollar.

On Thursday, the rupee had settled at 277.91, according to the State Bank of Pakistan (SBP).

The currency market is now factoring in the International Monetary Fund (IMF) Executive Board meeting that is scheduled to take Pakistan’s 37-month Extended Fund Facility (EFF) of about $7 billion on its agenda on September 25.

Globally, the US dollar had its own problems as markets priced in more rapid US rate cuts.

The US dollar was up 1.4% for the week at 142.84 yen, though off an overnight high of 143.95.

That dovish outlook has bolstered hopes for continued US economic growth and sparked a major rally in risk assets. Currencies leveraged to global growth and commodity prices also benefited, with the Aussie topping $0.6800.

The US dollar index was stuck at 100.69 and just above a one-year low.

Oil prices, a key indicator of currency parity, eased on Friday but were on track to register gains for a second straight week following a large cut in US interest rates and declining global stockpiles.

Brent futures were down 50 cents, or 0.67%, at $74.38 a barrel at 1004 GMT while US WTI crude futures fell 48 cents, or 0.65%, at $71.47.

Still, both benchmarks were up 3.7% and 4% respectively on the week.

Prices have been recovering after Brent fell below $69 for the first time in nearly three years on Sept. 10.

Inter-bank market rates for dollar on Friday

BID                            Rs 277.84

OFFER                      Rs 278.04

Open-market movement

In the open market, the PKR lost 3 paise for buying and remained unchanged for selling against USD, closing at 279.44 and 280.70, respectively.

Against Euro, the PKR gained 5 paise for both buying and selling, closing at 308.87 and 311.87, respectively.

Against UAE Dirham, the PKR gained 10 paise for both buying and selling, closing at 75.45 and 76.20, respectively.

Against Saudi Riyal, the PKR gained 5 paise for buying and 3 paise for selling, closing at 73.75 and 74.46, respectively.

Open-market rates for dollar on Friday

BID                            Rs 279.44

OFFER                      Rs 280.70