Pakistan rupee snaps two-week rally against US dollar

Rupee's Performance Against US Dollar Since 04 March 2025

After ten consecutive sessions of positive momentum, the Pakistani rupee registered a decline against the US dollar, depreciating 0.04% in the inter-bank market on Wednesday.

At close, the currency settled at 282.67, a loss of Re0.10.

On Tuesday, the currency settled at 282.57.

Internationally, the US dollar was rangebound on Wednesday, with investors choosing to stay on the sidelines ahead of US President Donald Trump’s pick to fill a coming vacancy on the Federal Reserve’s Board of Governors.

Trump said on Tuesday he will decide on a nominee by the end of the week and had separately narrowed the possible replacements for Fed Chair Jerome Powell to a short list of four.

Data out the same day also showed the US services sector activity unexpectedly flatlined in July even as input costs climbed by the most in nearly three years, underscoring the hit from Trump’s tariffs on the economy, which has also begun to bite corporate earnings.

Still, those did little to sway the dollar, as traders were hesitant to take on fresh positions ahead of news on who would fill the Fed board vacancy. Concerns are mounting that partisan loyalty would invade the staid world of central bank policy.

The dollar was last little changed at 147.54 yen, while the euro ticked up 0.02% to $1.5760. Sterling last bought $1.3304.

Against a basket of currencies, the dollar was last at 98.76, still some distance away from its peak of 100.25 hit on Friday before the nonfarm payrolls figures.

Traders continue to price in an over 90% chance of a Fed cut in September, with about 58 basis points worth of easing expected by the year-end.

Oil prices, a key indicator of currency parity, rebounded from the previous session’s five-week low on Wednesday, as traders focused on US President Donald Trump threatening India with higher tariffs over its Russian crude purchases, and a larger-than-expected US crude draw.

Brent crude futures gained $1.11, or 1.6%, to $68.75 a barrel by 1119 GMT, while US West Texas Intermediate crude was up $1.12, or 1.7%, at $66.28 a barrel.

Inter-bank market rates for dollar on Wednesday

BID                            Rs 282.67

OFFER                      Rs 282.87

Open-market movement

In the open market, the PKR gained 12 paise for buying and remained unchanged for selling against USD, closing at 284.22 and 285.15, respectively.

Against Euro, the PKR lost 62 paise for buying and 81 paise for selling, closing at 328.53 and 330.45, respectively.

Against UAE Dirham, the PKR gained 3 paise for buying and lost 5 paise for selling, closing at 77.36 and 77.65, respectively.

Against Saudi Riyal, the PKR gained 1 paisa for buying and remained unchanged for selling, closing at 75.65 and 75.95, respectively.

Open-market rates for dollar on Wednesday

BID                            Rs 284.22

OFFER                      Rs 285.15