Rupee records slight decline against US dollar

The Pakistani rupee reported a slight decline against the US dollar, depreciating 0.03% in the inter-bank market on Friday.

At close, the currency settled at 278.42 for a loss of Re0.07 against the greenback.

On Thursday, the rupee had settled at 278.35, according to the State Bank of Pakistan (SBP).

Internationally, the US dollar was set to cap the week on a strong note on Friday as it was perched near a two-year high bolstered by a hawkish US rate outlook, while the yen struggled to stay afloat as it again weakened to a new low.

Currencies took a breather after huge moves in the previous session sparked by a broad rally in the greenback.

The greenback stayed on the front foot and attempted to notch a fresh two-year peak against a basket of currencies, with the US dollar index last up 0.02% at 108.45.

It was set to end the week with a 1.4% gain, underpinned by expectations that US rates will stay higher for longer. Markets are now pricing in less than 40 bps worth of cuts for 2025.

Focus is now on the release of the core PCE price data - the Fed’s preferred measure of inflation - later on Friday, for further clues on the outlook for the US economy.

Oil prices, a key indicator of currency parity, fell on Friday on worries about demand growth in 2025, especially in top crude importer China, putting global oil benchmarks on track to end the week down nearly 3%.

Brent crude futures fell by 41 cents, or 0.56%, to $72.47 a barrel by 0420 GMT. US West Texas Intermediate crude futures fell 39 cents, or 0.56%, to $68.99 per barrel.

Inter-bank market rates for dollar on Friday

BID                            Rs 278.42

OFFER                      Rs 278.62

Open-market movement

In the open market, the PKR lost 1 paisa for buying and 4 paise for selling against USD, closing at 277.50 and 279.38, respectively.

Against Euro, the PKR gained 39 paise for buying and 48 paise for selling, closing at 287.35 and 289.30, respectively.

Against UAE Dirham, the PKR lost 6 paise for buying and 1 paise for selling, closing at 75.53 and 76.05, respectively.

Against Saudi Riyal, the PKR lost 5 paise for buying and remained unchanged for selling, closing at 73.80 and 74.30, respectively.

Open-market rates for dollar on Friday

BID                            Rs 277.50

OFFER                      Rs 279.38