Rupee registers slight improvement against US dollar

The Pakistani rupee recorded marginal improvement against the US dollar, appreciating 0.05% in the inter-bank market on Thursday.

At close, the currency settled at 278.72 for a gain of Re0.13 against the greenback.

According to the State Bank of Pakistan (SBP), the rupee closed at 278.85 on Wednesday.

Globally, the US dollar steadied against major peers on Thursday, continuing its near paralysis of the past two days before more concrete announcements on tariffs from US President Donald Trump.

A spate of central bank policy decisions are also due over the next week, with the Bank of Japan widely expected to raise interest rates at the end of a two-day meeting on Friday.

Rate decisions from the US Federal Reserve and European Central Bank are scheduled for Wednesday and Thursday of next week, respectively.

The US dollar index - which measures the currency versus six top rivals, including the euro and yen - was flat at 108.25, following two days of gains of around 0.1%.

On Monday, it tumbled 1.2%, its steepest one-day slide since November 2023, as Trump’s first day in office brought a barrage of executive orders, but none on tariffs.

So far this week, Trump has mooted levies of around 25% on Canada and Mexico and 10% on China from February 1. He also promised duties on European imports, without giving details.

Oil prices, a key indicator of currency parity, were little changed on Thursday, maintaining the previous session’s losses on uncertainty over how US President Donald Trump’s proposed tariffs and energy policies would affect global economic growth and energy demand.

Brent crude futures dipped 2 cents to $78.98 a barrel by 0941 GMT.

US West Texas Intermediate crude (WTI) lost 4 cents to $75.40.

Inter-bank market rates for dollar on Thursday

BID                            Rs 278.72

OFFER                      Rs 278.92

Open-market movement

In the open market, the PKR lost 2 paise for buying and gained 13 paise for selling against USD, closing at 279.34 and 281.13, respectively.

Against Euro, the PKR gained 47 paise for buying and 48 paise for selling, closing at 289.36 and 292.86, 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 lost 1 paisa for buying and remained unchanged for selling, closing at 74.26 and 74.80, respectively.

Open-market rates for dollar on Thursday

BID                            Rs 279.34

OFFER                      Rs 281.13