Rupee records marginal fall against US dollar

The Pakistani rupee saw a marginal decline against the US dollar, depreciating 0.03% in the inter-bank market on Tuesday.

At close, the currency settled at 278.05, a loss of Re0.07 against the greenback.

On Monday, the rupee had settled at 277.98, according to the State Bank of Pakistan (SBP).

Internationally, the Australian dollar sank towards a four-month low on Tuesday after the central bank softened its tone on the policy outlook, raising expectations for an earlier interest rate cut.

The US dollar was steady against its major rivals and edged to its strongest this month versus the yen as traders looked ahead to a reading of US inflation on Wednesday for further clues on the pace of Federal Reserve easing.

The US dollar index, which measures the currency against six major peers, was steady at 106.16.

The US currency eased 0.07% to 151.11 yen after earlier climbing to 151.55 yen for the first time since Nov. 28.

The US currency inched 0.1% lower to 0.8778 Swiss franc.

While markets have priced in a quarter-point Fed rate cut on December 18 as a near certainty, the consumer price index due on Wednesday could shine some light on how much room policymakers have for easing next year.

Oil prices, a key indicator of currency parity, slipped on Tuesday as concerns eased about the fallout from the overthrow of Syria’s president, despite support from China’s plan to ramp up policy stimulus - a potential boost to demand from the world’s biggest crude buyer.

Brent crude futures fell 24 cents to $71.90 per barrel at 1009 GMT.

US West Texas Intermediate was down 28 cents at $68.09. Both benchmarks had risen more than 1% on Monday.

Inter-bank market rates for dollar on Tuesday

BID                            Rs 278.05

OFFER                      Rs 278.25

Open-market movement

In the open market, the PKR lost 6 paise for buying and 8 paise for selling against USD, closing at 277.21 and 279.03, respectively.

Against Euro, the PKR gained 40 paise for buying and 42 paise for selling, closing at 291.10 and 293.24, respectively.

Against UAE Dirham, the PKR lost 1 paisa for buying and remained unchanged for selling, closing at 75.42 and 76.00, respectively.

Against Saudi Riyal, the PKR lost 1 paisa for buying and remained unchanged for selling, closing at 73.70 and 74.20, respectively.

Open-market rates for dollar on Tuesday

BID                            Rs 277.21

OFFER                      Rs 279.03