Pakistani rupee registers 14th successive gain against US dollar

Rupee's Performance Against US Dollar Since 04 March 2025

The Pakistani rupee registered marginal improvement, appreciating 0.01% against the US dollar in the inter-bank market on Wednesday.

At close, the rupee settled at 281.83, a gain of Re0.03 against the greenback. This was rupee’s 14th consecutive gain against the greenback.

On Tuesday, the local unit closed the session at 281.86.

Finance Minister Muhammad Aurangzeb on Wednesday said Pakistan was gearing up to re-enter international capital markets, beginning with the issuance of a Panda bond, expressing optimism that the inaugural issue could take place before the end of the year. The minister also highlighted potential exploration of other global markets, including GMTN, as credit ratings and spreads improved.

Internationally, the US dollar struggled to gain ground on Wednesday as renewed investor worries about the Federal Reserve’s independence undermined the currency following US President Donald Trump’s latest attempt to extend his power over the central bank.

Trump had on Monday said he would fire Federal Reserve Governor Lisa Cook over alleged improprieties in obtaining mortgage loans, though Cook’s lawyer later said the governor will file a lawsuit to prevent her ouster, kicking off what could be a protracted legal fight.

The US dollar weakened on the developments as Trump’s push to gain more influence over US institutions and the path of monetary policy further eroded investors’ trust in the greenback’s dominance.

Currency moves in Asia on Wednesday were largely subdued, though the dollar struggled to recoup its losses against its peers and last bought 147.52 yen. The euro steadied at $1.1638, while sterling was similarly little changed at $1.3478.

Against a basket of currencies, the US dollar edged marginally higher to 98.27, after falling 0.24% in the previous session.

Also weighing on the dollar were expectations of faster and deeper US rate cuts, particularly if Cook - should she be removed from her position - gets replaced by someone dovish.

Trump has repeatedly called for the Fed to lower interest rates and has threatened to fire Fed Chair Jerome Powell, although he recently backed down from that.

Oil prices, a key indicator of currency parity, edged higher on Wednesday on a larger-than-expected drop in U.S. crude inventories and the potential impact of new U.S. tariffs on India.

Brent crude futures were up 43 cents, or 0.6%, at $67.65 a barrel by 10:58 a.m. ET (1458 GMT). West Texas Intermediate crude futures gained 50 cents, or 0.8%, to $63.77. Both contracts fell by more than 2% on Tuesday.

U.S. crude inventories dropped by 2.4 million barrels to 418.3 million barrels last week, the Energy Information Administration said, compared with analysts’ expectations in a Reuters poll for a 1.9-million-barrel draw.

Inter-bank market rates for dollar on Wednesday

BID                            Rs 281.83

OFFER                      Rs 282.02

Open-market movement

In the open market, the PKR gained 12 paise for buying and 10 paise for selling against USD, closing at 282.95 and 283.80, respectively.

Against Euro, the PKR gained 91 paise for buying and 1.06 rupee for selling, closing at 327.40 and 329.27, respectively.

Against UAE Dirham, the PKR gained 5 paise for both buying and selling, closing at 77.00 and 77.25, respectively.

Against Saudi Riyal, the PKR gained 4 paise for buying and remained unchanged for selling, closing at 75.30 and 75.60, respectively.

Open-market rates for dollar on Wednesday

BID                            Rs 282.95

OFFER                      Rs 283.80