Rupee’s 33-session winning streak ends with slight dip against US dollar

Rupee's Performance Against US Dollar Since 04 March 2025

The Pakistani rupee’s appreciation run against the US dollar came to a halt on Wednesday, as the local currency registered a marginal decline in the inter-bank market.

At close, the currency settled at 281.43, a decline of Re0.01 against the greenback.

On Tuesday, the local unit closed at 281.42, gaining Re0.03 against the greenback for the 33rd consecutive session.

Internationally, the US dollar edged up from its lowest level in close to a week on Wednesday, with traders expecting two more US interest rate cuts this year, even after Federal Reserve Chair Jerome Powell struck a cautious tone on further easing overnight.

Australia’s dollar firmed after a hotter-than-expected headline reading of consumer inflation, less than a week before the Reserve Bank’s next policy decision. New Zealand’s dollar was steady following the naming of a new central bank chief.

The US dollar index, which measures the currency against six major rivals, added 0.1% to 97.335 as of 0150 GMT, attempting to claw back some ground after two straight losing sessions that saw it touch the lowest since Thursday at 97.198 overnight.

Markets are priced for quarter-point rate cuts at each of the remaining two Fed policy meetings this year. Another reduction is expected in the first quarter of 2026, broadly aligning with forecasts from Fed officials following a quarter-point cut on Wednesday of last week.

The dollar had bounced back from the lowest level since early 2022 at 96.224 after the Fed’s policy announcement and Powell’s subsequent news conference, which fell short of the market’s more dovish expectations following a sharp weakening of the labour market.

Oil prices, a key indicator of currency parity, rose over 1% on Wednesday as an industry report showed US crude inventories declined last week, adding to a sense in the market of tightening supplies amid export issues in Kurdistan and Venezuela and disruptions to Russian supplies.

Brent futures were up 97 cents, or 1.4%, to $68.60 a barrel at 1321 GMT. US West Texas Intermediate crude futures were up 99 cents, or 1.6%, to $64.40.

Inter-bank market rates for dollar on Wednesday

BID                            Rs 281.43

OFFER                      Rs 281.62

Open-market movement

In the open market, the PKR remained unchanged for both buying and selling against USD, closing at 281.92 and 282.45, respectively.

Against Euro, the PKR gained 37 paise for buying and 30 paise for selling, closing at 331.75 and 334.99, respectively.

Against UAE Dirham, the PKR gained 2 paise for both buying and selling, closing at 76.99 and 77.77, respectively.

Against Saudi Riyal, the PKR gained 2 paise for buying and lost 1 paisa for selling, closing at 75.10 and 75.81, respectively.

Open-market rates for dollar on Wednesday

BID                            Rs 281.92

OFFER                      Rs 282.45