Rupee stable against US dollar

The Pakistani rupee remained largely unchanged against the US dollar in the inter-bank market on Wednesday.

At close, the currency settled at 277.73 after a gain of Re0.01 against the greenback.

On Tuesday, the rupee had settled at 277.74, according to the State Bank of Pakistan (SBP).

Internationally, the US dollar hovered at a 2-1/2-month peak on Wednesday as investors adjusted bets toward a gradual reduction of interest rates while keeping an eye on a close presidential election race.

The greenback has climbed for three weeks as expectation for aggressive rate hikes from the Federal Reserve has faded after a slew of upbeat economic data.

Markets now have a 91% chance priced in for a moderate quarter-basis-point cut in November, the CME FedWatch tool showed.

A month earlier, investors were split between bets for 50 basis points. That less dovish outlook for the Fed has helped buoy Treasury yields.

Oil prices, a key indicator of currency parity, fell on Wednesday after industry data showed US crude inventories swelled more than expected, though crude futures were still up about 3% this week as traders factored in continuing conflict in the Middle East.

Brent crude futures dropped 73 cents, or 1%, to $75.31 a barrel by 0917 GMT.

US West Texas Intermediate crude futures shed 74 cents, also 1%, to $71.00 a barrel.

Inter-bank market rates for dollar on Wednesday

BID                            Rs 277.73

OFFER                      Rs 277.93

Open-market movement

In the open market, the PKR gained 3 paise for buying and 5 paise for selling against USD, closing at 276.91 and 278.67, respectively.

Against Euro, the PKR gained 49 paise for buying and 50 paise for selling, closing at 298.15 and 300.25, respectively.

Against UAE Dirham, the PKR remained unchanged for both buying and selling, closing at 75.35 and 75.89, respectively.

Against Saudi Riyal, the PKR gained 1 paisa for buying and 2 paise for selling, closing at 73.59 and 74.07, respectively.

Open-market rates for dollar on Wednesday

BID                            Rs 276.91

OFFER                      Rs 278.67