Rupee largely unchanged against US dollar

The Pakistani rupee remained largely stable against the US dollar on Tuesday, appreciating 0.01% in the inter-bank market.

At close, the currency settled at 277.69, a gain of Re0.02 against the US dollar.

On Monday, the rupee had settled at 277.71, according to the State Bank of Pakistan (SBP).

Internationally, the US dollar firmed against its major peers on Tuesday after Federal Reserve Chair Jerome Powell pushed back against bets on more supersized interest rate cuts.

Powell adopted a more hawkish tone in a speech at a conference in Tennessee, saying the US central bank would likely stick with quarter-percentage-point interest rate cuts moving forward.

“This is not a committee that feels like it is in a hurry to cut rates quickly,” he said.

Traders remain certain that the Fed will cut again at the next policy setting meeting in November, but slashed expectations for a 50 basis-point (bps) reduction to 35.4% from 53.3% a day earlier, according to CME Group’s FedWatch Tool.

The dollar index added 0.1% to 100.82 as of 0403 GMT, after pushing 0.3% higher on Monday.

The greenback rose 0.45% to 144.27 yen, after whipsawing from as high as 146.495 yen on Friday to as low as 141.65 yen on Monday.

Oil prices, a key indicator of currency parity, were little changed on Tuesday as stronger supply prospects and tepid global demand growth outweighed worries that escalating tensions in the Middle East could impact output from the key exporting region.

Brent crude futures for December delivery edged up 13 cents, or 0.18%, to $71.83 a barrel as of 0615 GMT.

US West Texas Intermediate crude futures for November delivery gained 14 cents, or 0.21%, to $68.31.

Inter-bank market rates for dollar on Tuesday

BID                            Rs 277.69

OFFER                      Rs 277.89

Open-market movement

In the open market, the PKR gained 6 paise for buying and 10 paise for selling against USD, closing at 278.19 and 279.84, respectively.

Against Euro, the PKR gained 1.83 rupee for buying and 1.84 rupee for selling, closing at 307.00 and 309.89, respectively.

Against UAE Dirham, the PKR remained unchanged for buying and lost 1 paisa for selling, closing at 75.36 and 76.08, respectively.

Against Saudi Riyal, the PKR remained unchanged for buying and gained 1 paisa for selling, closing at 73.61 and 74.27, respectively.

Open-market rates for dollar on Tuesday

BID                            Rs 278.19

OFFER                      Rs 279.84