Rupee registers marginal decline against US dollar

The Pakistani rupee saw a minor decrease against the US dollar, depreciating 0.02% in the inter-bank market on Wednesday.

At close, the currency settled at 277.92, a loss of Re0.05 against the greenback.

On Tuesday, the rupee had settled at 277.87, according to the State Bank of Pakistan (SBP).

Internationally, the US dollar recovered from a three-week low versus the yen on Wednesday and held its ground against other major rivals as traders pondered the chances of a Federal Reserve interest-rate cut this month.

The US dollar index, which measures the currency against six top counterparts including the yen and the euro, added 0.07% to 106.39 at 0120 GMT.

The US dollar added 0.18% to 149.90 yen, continuing its recovery after dipping to 148.65 yen in the previous session for the first time since Oct. 11.

The US dollar got some support on Tuesday after data showed US job openings increased moderately in October while layoffs declined, even as Federal Reserve officials on the day did not provide definitive guidance on what they intend to do at the conclusion of their next policy meeting in two weeks’ time.

Traders are waiting for crucial monthly payrolls data on Friday for more steer on the rates outlook, while a private payrolls report due later on Wednesday will offer something of a preview.

Oil prices, a key indicator of currency parity, firmed slightly on Wednesday, with traders expecting OPEC+ to announce an extension to supply cuts this week while heightened geopolitical tensions continue to dominate market sentiment.

Brent crude futures were up 19 cents, or 0.26%, at $73.81 a barrel by 0916 GMT while US West Texas Intermediate crude futures rose 13 cents, or 0.19%, to $70.07.

On Tuesday, Brent posted its biggest gain in two weeks, rising by 2.5%.

Inter-bank market rates for dollar on Wednesday

BID Rs 277.92

OFFER Rs 278.12

Open-market movement

In the open market, the PKR gained 10 paise for buying and 7 paise for selling against USD, closing at 277.07 and 278.80, respectively.

Against Euro, the PKR gained 17 paise for buying and 9 paise for selling, closing at 290.09 and 292.35, respectively.

Against UAE Dirham, the PKR lost 3 paise for buying and remained unchanged for selling, closing at 75.41 and 76.00, respectively.

Against Saudi Riyal, the PKR remained unchanged for buying and lost 1 paisa for selling, closing at 73.66 and 74.20, respectively.

Open-market rates for dollar on Wednesday

BID Rs 277.07

OFFER Rs 278.80