Rupee declines marginally against US dollar

The Pakistani rupee registered a marginal decline against the US dollar, depreciating 0.02% in the inter-bank market on Wednesday.

At close, the currency settled at 277.89, a loss of Re0.05 against the greenback.

On Tuesday, the rupee had settled at 277.84, according to the State Bank of Pakistan (SBP).

Globally, the US dollar rallied broadly on Wednesday as early exit polls in the extremely close US presidential election appeared to give an edge to Republican Donald Trump.

The early results were as anticipated, with the contest expected to come down to seven swing states.

Trump’s tariff and immigration policies are seen as inflationary by analysts, buoying the dollar. Mexico and China are among countries that stand to be hardest hit by Trump tariffs.

The dollar index - which measures the currency against six major peers including the euro and yen - rose 0.76% to 104.14 as of 0048 GMT.

Bitcoin climbed more than 3% to $71,317. Trump is seen as more actively supportive of cryptocurrencies than Harris.

Oil prices, a key indicator of currency parity, fell as much as 2% on Wednesday after two sessions of gains, as the dollar surged on projections that Republican Donald Trump had won the US presidential election, and as US crude stocks rose more than forecast.

Brent crude oil futures was down $1.17, or 1.5%, to trade at $74.36 per barrel at 0710 GMT, while US West Texas Intermediate (WTI) crude lost $1.11, or 1.5%, to trade at $70.88 per barrel.

Besides the surging dollar weighing on commodity prices, including oil, a Trump presidency could see policies that may further pressure the Chinese economy, hence weakening demand, said independent analyst Tina Teng, as China is the world’s top importer of crude oil.

Inter-bank market rates for dollar on Wednesday

BID                            Rs 277.89

OFFER                      Rs 278.09

Open-market movement

In the open market, the PKR lost 7 paise for buying and 5 paise for selling against USD, closing at 276.92 and 278.79, respectively.

Against Euro, the PKR gained 3.33 rupees for buying and 3.45 rupees for selling, closing at 296.25 and 299.13, respectively.

Against UAE Dirham, the PKR remained unchanged for buying and lost 1 paisa for selling, closing at 75.26 and 75.97, respectively.

Against Saudi Riyal, the PKR remained unchanged for buying and lost 2 paise for selling, closing at 73.52 and 74.18, respectively.

Open-market rates for dollar on Wednesday

BID                            Rs 276.92

OFFER                      Rs 278.79