Rupee largely stable against US dollar

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

At close, the currency settled at 277.94, a loss of Re0.02 against the greenback.

On Wednesday, the rupee had settled at 277.92, according to the State Bank of Pakistan (SBP).

Globally the euro was subdued on Thursday after the widely expected collapse of the French government, stoking worries about the region’s second-biggest economic power, while the South Korean won steadied in the aftermath of the martial law debacle

The single currency was fetching $1.0514, trading in tight ranges in early Asian hours but was close to the two-year low of $1.03315 it touched at the end of November as traders brace for a long-winded reckoning for France.

Markets are pricing in 60% chance of a rate hike in December.

Over in the United States, investor confidence of a rate cut there held firm despite comments from Federal Reserve Chair Jerome Powell and a slate of economic data overnight that showed services sector activity slowed in November after posting gains in recent months.

Powell on Wednesday said the economy is stronger now than the central bank had expected in September when it began reducing interest rates, and appeared to signal his support for a slower pace of interest-rate cuts ahead.

The dollar index, which measures the US currency against six rivals, was at 106.31.

Oil prices, a key indicator of currency parity, were up slightly on Thursday ahead of an OPEC+ meeting later in the day, with investors waiting to see what the producer group would do next on supply cuts while also monitoring geopolitical tension in the Middle East.

Brent crude futures rose 39 cents, or 0.5%, to $72.70 a barrel by 0944 GMT, while US crude futures were at $68.97 a barrel, up 43 cents, or 0.6%.

Both benchmarks fell nearly 2% on Wednesday.

Inter-bank market rates for dollar on Thursday

BID                            Rs 277.94

OFFER                      Rs 278.14

Open-market movement

In the open market, the PKR lost 9 paise for buying and 11 paise for selling against USD, closing at 277.16 and 278.91, respectively.

Against Euro, the PKR lost 48 paise for buying and 42 paise for selling, closing at 290.57 and 292.77, respectively.

Against UAE Dirham, the PKR lost 4 paise for buying and remained unchanged for selling, closing at 75.45 and 76.00, respectively.

Against Saudi Riyal, the PKR lost 2 paise for buying and remained unchanged for selling, closing at 73.68 and 74.20, respectively.

Open-market rates for dollar on Thursday

BID                            Rs 277.16

OFFER                      Rs 278.91