Rupee registers marginal decline against US dollar

The Pakistani rupee lowered against the US dollar, depreciating 0.04% in the inter-bank market on Tuesday.

At close, the rupee settled at 279.37, a loss of Re0.10 against the greenback.

The rupee had closed at 279.27 on Monday.

Internationally, the US dollar wobbled near two-month lows on Tuesday as traders weighed tariff worries and the path to US rate cuts, while the Australian dollar managed to stay close to its highest level in two months even as markets bet on an imminent rate cut.

The yen held on to its recent gains as strong growth data bolstered odds of the Bank of Japan raising interest rates again this year, with July seen as a live meeting.

Investor focus this week will be on Wednesday’s release of minutes of the Federal Reserve’s meeting in January to gauge how policymakers have sought to weigh the risk of a broader tariff war in the wake of President Donald Trump’s trade policies.

Data last week showed US consumer prices increased by the most in nearly 1-1/2 years in January, reinforcing the Fed’s message that it was in no rush to resume cutting rates amid growing uncertainty over the economy.

The US dollar index, which measures the US currency against six other major rivals, was 0.1% higher at 106.83 but still near the two-month low of 106.56 it touched on Friday.

Oil prices, a key indicator of currency parity, advanced on Tuesday adding to gains in the previous session after a drone attack on an oil pipeline pumping station in Russia reduced flows from Kazakhstan, but gains were capped on the prospects of supply rising soon.

Brent crude futures gained 23 cents, or 0.3%, to $75.45 per barrel at 0758 GMT.

US West Texas Intermediate crude futures were up 75 cents from Friday’s close at $71.49 a barrel. There was no settlement for WTI on Monday due to the US Presidents’ Day holiday.

Inter-bank market rates for dollar on Tuesday

BID                            Rs 279.37

OFFER                      Rs 279.57

Open-market movement

In the open market, the PKR lost 9 paise for buying and 10 paise for selling against USD, closing at 278.74 and 281.08, respectively.

Against Euro, the PKR gained 62 paise for buying and 67 paise for selling, closing at 290.96 and 293.88, respectively.

Against UAE Dirham, the PKR gained 1 paisa for buying and lost 5 paise for selling, closing at 75.95 and 76.58, respectively.

Against Saudi Riyal, the PKR lost 1 paisa for buying and 5 paise for selling, closing at 74.22 and 74.83, respectively.

Open-market rates for dollar on Tuesday

BID                            Rs 278.74

OFFER                      Rs 281.08