Rupee records marginal decline against US dollar

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

At close, the currency settled at 278.23 for a loss of Re0.06 against the greenback.

On Wednesday, the rupee had settled at 278.17, according to the State Bank of Pakistan (SBP).

Globally, the US dollar traded in a narrow range on Thursday after hitting a two-week high in the previous session, supported by a rise in US Treasury yields even as market players bet the US Federal Reserve will cut interest rates next week.

The greenback held on to a hefty portion of the previous day’s gains, helped by a rise in US Treasury yields on Wednesday as the Treasury Department sold long-dated supply and data showed a widening US budget deficit.

Wednesday’s consumer price index (CPI) report for November showed a 0.3% rise, the largest gain since April after advancing 0.2% for four straight months.

Markets now see a 98.6% probability that the Fed will cut rates by 25 basis points at its Dec. 17-18 meeting, compared with 78.1% a week ago, CME FedWatch tool showed.

Market players will get more US inflation data later in the day when the producer price index (PPI) is published.

Oil prices, a key indicator of currency parity, were little changed on Thursday as forecasts of weak demand and a higher-than-expected rise in U.S. gasoline and distillate inventories placed a lid on gains from an additional round of EU sanctions threatening Russian oil flows.

Brent crude futures were up 31 cents at $73.83 a barrel at 0815 GMT. U.S. West Texas Intermediate crude futures rose 22 cents to $70.51. Both benchmarks rose by more than $1 on Wednesday.

OPEC cut its demand growth forecasts for 2025 for the fifth straight month on Wednesday and by the largest amount yet.

Inter-bank market rates for dollar on Thursday

BID                            Rs 278.23

OFFER                      Rs 278.43

Open-market movement

In the open market, the PKR lost 4 paise for buying and gained 1 paise for selling against USD, closing at 277.30 and 279.10, respectively.

Against Euro, the PKR lost 35 paise for buying and gained 64 paise for selling, closing at 290.45 and 292.59, respectively.

Against UAE Dirham, the PKR lost 2 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 73.73 and 74.25, respectively.

Open-market rates for dollar on Thursday

BID                            Rs 277.30

OFFER                      Rs 279.10