Rupee registers marginal gain against US dollar

The Pakistani rupee improved further against the US dollar in the inter-bank market on Wednesday.

At close, the local currency settled at 280.56, a gain of Re0.01 against the greenback.

On Tuesday, the local unit closed at 280.57.

Finance Minister Muhammad Aurangzeb said on Wednesday Pakistan, like several other emerging markets, must build stronger fiscal and external buffers to withstand global uncertainties.

The finance minister reiterated that the country had achieved macroeconomic stability. “However, we want to avoid a gold rush situation,” he said.

Meanwhile, the Asian Development Bank (ADB) approved an additional $48 million loan for the Balochistan Water Resources Development Sector Project in Pakistan.

Internationally, the US dollar eased on Wednesday in the broader market, after benign US economic data reinforced expectations of a December rate cut, and as investors wagered that the leading candidate for the next Federal Reserve chair may guide policy in a more dovish direction.

Data on Tuesday showed US retail sales rose less than expected in September, while producer prices were in line with expectations.

US consumer confidence also sagged in November as households worried about jobs and their financial situation.

All of that left traders adding to bets of a Fed cut next month, with markets now pricing in an 84% chance of a 25-basis-point move, according to the CME FedWatch tool, which in turn kept pressure on the dollar.

Against a weaker greenback, the euro edged closer to the $1.16 level and last bought $1.1583, helped slightly by signs of progress in a peace plan between Russia and Ukraine.

Against a basket of currencies, the dollar was down 0.2% to 99.67, having lost 0.3% in the previous session, its biggest daily decline in nearly three weeks.

Oil prices, a key indicator of currency parity, were steady on Wednesday after sliding to a one-month low in the previous session as investors assessed prospects of oversupply and talks over a Russia-Ukraine peace deal.

Brent crude futures lost 13 cents to $62.35 a barrel by 1315 GMT. US West Texas Intermediate crude futures were down 7 cents at $57.88.

Inter-bank market rates for dollar on Wednesday

BID Rs 280.56

OFFER Rs 280.76

Open-market movement

In the open market, the PKR gained 2 paise for buying and remained unchanged for selling against USD, closing at 281.24 and 281.60, respectively.

Against Euro, the PKR lost 1.42 rupee for buying and 1.46 rupee for selling, closing at 325.14 and 328.08, respectively.

Against UAE Dirham, the PKR gained 8 paise for buying and 11 paise for selling, closing at 76.57 and 77.30, respectively.

Against Saudi Riyal, the PKR gained 1 paisa for buying and remained unchanged for selling, closing at 74.97 and 75.55, respectively.

Open-market rates for dollar on Wednesday

BID Rs 281.24

OFFER Rs 281.60