Rupee registers marginal decline against US dollar

The Pakistani rupee saw a marginal decline against the US dollar, depreciating 0.06% in the inter-bank market on Tuesday.

At close, the currency settled at 278.82 for a loss of Re0.17 against the greenback.

According to the State Bank of Pakistan (SBP), the rupee closed at 278.65 on Monday.

Internationally, the US dollar rebounded in choppy Asian trade on Tuesday after US President Donald Trump suggested the United States could impose tariffs on Canada and Mexico shortly, though details were lacking.

Trump was quoted as saying his team was thinking of tariffs around 25%, which could be announced on Feb. 1, but he offered no other specifics.

The comments came as a surprise given officials had earlier signalled any new taxes would be imposed in a “measured” way, a major relief for trade-exposed currencies. The following memo merely directed agencies to investigate and remedy persistent trade deficits.

The market reaction was a knee-jerk fall in the Canadian dollar and Mexican peso, which helped the dollar pare losses suffered on Monday.

The US dollar climbed 1.2% to 1.4475 Canadian dollar, while adding 1.3% on the peso.

The dollar index bounced 0.6% to 108.65, having shed 1.2% overnight, its sharpest daily loss since late 2023.

Oil prices, a key indicator of currency parity, fell on Tuesday as investors assessed US President Donald Trump’s plans to apply new tariffs later than expected while boosting oil and gas production in the United States.

Brent crude futures were down 65 cents, or 0.81%, to $79.5 per barrel at 0909 GMT.

US West Texas Intermediate crude futures were down by $1.15, or 1.48%, at $76.73.

There was no settlement in the US market on Monday due to a public holiday.

Inter-bank market rates for dollar on Tuesday

BID                            Rs 278.82

OFFER                      Rs 279.02

Open-market movement

In the open market, the PKR gained 4 paise for buying and lost 7 paise for selling against USD, closing at 279.33 and 281.24, respectively.

Against Euro, the PKR lost 1.75 rupee for buying and 2.07 rupees for selling, closing at 288.95 and 292.02, respectively.

Against UAE Dirham, the PKR gained 1 paisa for buying and remained unchanged for selling, closing at 75.97 and 76.55, respectively.

Against Saudi Riyal, the PKR gained 1 paisa for buying and remained unchanged for selling, closing at 74.24 and 74.80, respectively.

Open-market rates for dollar on Tuesday

BID                            Rs 279.33

OFFER                      Rs 281.24