Rupee registers marginal decline against US dollar

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

At close, the currency settled at 278.67 for a loss of Re0.05 against the greenback.

The rupee settled at 278.62 on Monday, according to the State Bank of Pakistan (SBP).

Internationally, the US dollar hovered near a one-week low versus major peers on Tuesday as traders considered whether President-elect Donald Trump’s tariffs would be less aggressive than promised.

On Monday, the greenback slid against the likes of the euro and sterling following a report in the Washington Post that Trump’s aides were exploring plans that would apply tariffs only on sectors seen as critical to US national or economic security.

However, the currency made up some of the ground after Trump denied the report in a post on his Truth Social platform.

The US dollar index, which gauges the currency against the euro, sterling and four other rivals, edged up to 108.38, after dropping as low as 107.74 overnight, its weakest since Dec. 30.

On Jan. 2, the index pushed as high as 109.58 for the first time since November 2022, in large part due to expectations that Trump’s promised fiscal stimulus, reduced regulation and higher tariffs will boost US growth.

Oil prices, a key indicator of currency parity, eased on Tuesday, extending losses into a second consecutive session after last week’s rally, although concerns about tighter Russian and Iranian supply amid widening Western sanctions checked losses.

Brent futures edged down 8 cents, or 0.1%, to $76.22 a barrel by 0452 GMT, while US West Texas Intermediate (WTI) crude fell 15 cents, or 0.19%, to $73.42.

Inter-bank market rates for dollar on Tuesday

BID                            Rs 278.67

OFFER                      Rs 278.87

Open-market movement

In the open market, the PKR lost 19 paise for buying and 7 paise for selling against USD, closing at 278.38 and 280.07, respectively.

Against Euro, the PKR lost 1.98 rupee for buying and 2.42 rupees for selling, closing at 289.18 and 291.66, respectively.

Against UAE Dirham, the PKR lost 8 paise for buying and 5 paise for selling, closing at 75.75 and 76.25, respectively.

Against Saudi Riyal, the PKR lost 6 paise for buying and 4 paise for selling, closing at 74.03 and 74.49, respectively.

Open-market rates for dollar on Tuesday

BID                            Rs 278.38

OFFER                      Rs 280.07