Rupee remains largely stable against US dollar

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

At close, the currency settled at 278.48 for a loss of Re0.01 against the greenback.

During the previous week, the rupee decreased marginally against the US dollar as it lost Re0.05 or 0.2% in the inter-bank market.

The local unit closed at 278.47, against 278.42 it had closed the week earlier against the greenback, according to the State Bank of Pakistan (SBP).

Internationally, the Japanese yen traded around five-month lows on Monday against a US dollar underpinned by rising US yields as thin year-end liquidity kept most currencies in tight ranges.

The US dollar index measure against major rivals was flat at 107.98.

Rising US Treasury yields have been a tailwind for the US dollar, with the benchmark 10-year note hitting a more than seven-month high last week. The yield hovered close to that mark on Monday, at 4.625%.

For the month, the US dollar index is up 2.3%, bringing year-to-date gains to 6.6%.

It has gained in each of the last three months, helped by expectations President-elect Donald Trump’s policies of looser regulation, tax cuts, tariff hikes and tighter immigration will be both pro-growth and inflationary and keep US yields elevated.

Oil prices, a key indicator of currency parity, were broadly steady on Monday in thin holiday trade at the end of the year, as traders awaited more Chinese and US economic data later this week to assess growth in the world’s two largest oil consumers.

Brent crude futures eased 4 cents to $74.13 a barrel by 0948 GMT.

The more active March contract was at $73.75 a barrel, also down 4 cents.

US West Texas Intermediate crude lost 1 cent to $70.59 a barrel.

Both contracts rose about 1.4% last week buoyed by a larger-than-expected drawdown from US crude inventories in the week ended Dec. 20 as refiners ramped up activity and the holiday season boosted fuel demand.

Inter-bank market rates for dollar on Monday

BID                            Rs 278.48

OFFER                      Rs 278.68

Open-market movement

In the open market, the PKR lost 8 paise for buying and 3 paise for selling against USD, closing at 277.89 and 279.54, respectively.

Against Euro, the PKR lost 1.13 rupee for buying and 1.38 rupee for selling, closing at 289.20 and 291.50, respectively.

Against UAE Dirham, the PKR lost 4 paise for buying and 5 paise for selling, closing at 75.60 and 76.10, respectively.

Against Saudi Riyal, the PKR lost 3 paise for buying and remained unchanged for selling, closing at 73.88 and 74.35, respectively.

Open-market rates for dollar on Monday

BID                            Rs 277.89

OFFER                      Rs 279.54