Rupee's Performance Against US Dollar Since 04 March 2025
The Pakistani rupee saw marginal improvement against the US dollar in the inter-bank market on Friday.
At close, the local currency settled at 280.25, a gain of Re0.01 against the greenback.
On Thursday, the local unit closed at 280.26.
Finance Minister Muhammad Aurangzeb said on Friday Pakistan was moving forward with its inaugural Panda Bond issuance, targeting $250 million under the broader $1 billion programme.
Globally, the Japanese yen was pinned near recent lows on Friday while traders waited to see whether the Bank of Japan could convince the market it could keep hiking interest rates into next year, while the euro slipped a bit after the central bank didn’t hint at rate hikes.
A US dollar bought 155.59 yen early in the Asia morning, not too far from the yen’s 10-month trough of 157.90 made in November, as markets fretted about Japan’s fiscal position and that policymakers were behind the curve in raising rates.
Investors are now all but sure Japan’s central bank will hike its short-term rate by 25 basis points to 0.75% later in the day, following hints from Governor Kazuo Ueda in a speech earlier this month - meaning market moves will depend on his tone and the outlook.
The US dollar briefly weakened overnight following a sharp and unexpected fall in US inflation, but investors were unsure how far to trust the data, as collection was interrupted by the US government shutdown, and the move soon retraced.
Sterling round-tripped to sit at $1.3392 after the Bank of England cut interest rates to 3.75%, as expected, but the decision was closer-run than the market had anticipated, which may limit the room for further easing.
The euro dipped about 0.1% overnight and traded at $1.1724 in Asia, weighed down because European Central Bank chief Christine Lagarde offered no forward guidance and said all options were on the table, pushing back against more hawkish members.
Oil prices, a key indicator of currency parity, ticked down on Friday and were set to close lower for a second straight week, as rising prospects of a Russia-Ukraine peace deal offset concerns over supply disruptions from a blockade of Venezuelan oil tankers.
Brent crude futures fell 9 cents, or 0.2%, to $59.73 a barrel by 0456 GMT, and US West Texas Intermediate crude was trading 13 cents, or 0.2% lower, at $56.02 a barrel.
On a weekly basis, Brent was 2.3% lower while WTI was down 2.5%.
Inter-bank market rates for dollar on Friday
BID Rs 280.25
OFFER Rs 280.45
Open-market movement
In the open market, the PKR lost 2 paise for buying and remained unchanged for selling against USD, closing at 280.72 and 281.30, respectively.
Against Euro, the PKR gained 25 paise for buying and 26 paise for selling, closing at 328.46 and 331.48, respectively.
Against UAE Dirham, the PKR lost 2 paise for both buying and selling, closing at 76.59 and 77.36, respectively.
Against Saudi Riyal, the PKR lost 1 paisa for buying and remained unchanged for selling, closing at 74.80 and 75.39, respectively.
Open-market rates for dollar on Friday
BID Rs 280.72
OFFER Rs 281.30
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