Rupee registers marginal decline against US dollar

The Pakistani rupee registered a marginal decline against the US dollar, depreciating 0.04% in the inter-bank market on Monday.

At close, the currency settled at 277.86, a loss of Re0.12 against the greenback.

During the previous week, the Pakistani rupee remained largely stable against the US dollar in the inter-bank market.

The local unit closed at 277.74, against 277.70 it had closed the week earlier against the greenback, according to the State Bank of Pakistan (SBP).

Globally, the US dollar edged higher on Monday as markets braced for US inflation data and a throng of Federal Reserve speakers this week, while the yuan nursed a hangover from Beijing’s latest underwhelming stimulus package.

The US dollar stood at 7.1955 yuan, having jumped 0.7% on Friday, and looks set to again test the 7.2000 barrier.

Trading was light with US bond markets closed for a public holiday, though stocks and futures are open.

The dollar index was a fraction firmer at 105.05, after gaining 0.6% last week mainly against the euro.

Analysts assume Donald Trump’s policies would put upward pressure on US inflation and bond yields, while limiting the Federal Reserve’s scope to ease policy.

A host of Fed officials are due to speak this week, including Chair Jerome Powell on Thursday, so there will be plenty of guidance on the outlook for rates.

Oil prices, a key indicator of currency parity, fell on Monday, after China’s stimulus plan disappointed investors seeking fuel demand growth in the world’s No. 2 oil consumer and as the U.S. dollar edged higher.

Brent crude futures fell $1.10, or 1.5% to $72.77 a barrel by 1101 GMT while U.S. West Texas Intermediate crude futures were at $69.17 a barrel, down $1.21, or 1.7%.

Both benchmarks fell more than 2% on Friday.

Inter-bank market rates for dollar on Monday

BID                            Rs 277.86

OFFER                      Rs 278.06

Open-market movement

In the open market, the PKR lost 12 paise for buying and 3 paise for selling against USD, closing at 276.95 and 278.77, respectively.

Against Euro, the PKR gained 2.58 rupees for buying and 2.45 rupees for selling, closing at 294.55 and 297.45, respectively.

Against UAE Dirham, the PKR gained 2 paise for both buying and selling, closing at 75.24 and 75.95, respectively.

Against Saudi Riyal, the PKR gained 4 paise for buying and 2 paise for selling, closing at 73.48 and 74.12, respectively.

Open-market rates for dollar on Monday

BID                            Rs 276.95

OFFER                      Rs 278.77