Rupee records slight uptick against US dollar

The Pakistani rupee registered slight improvement against the US dollar in the inter-bank market on Wednesday.

At close, the local currency settled at 280.06, a gain of Re0.01 against the greenback.

On Tuesday, the local unit closed at 280.07.

Globally, the US dollar hugged tight ranges on Wednesday ahead of a slew of US economic data that could set the tone for the Federal Reserve’s rate outlook, something traders consider more consequential for currencies than ongoing geopolitical tensions.

Markets have thus far largely brushed off deepening geopolitical fractures around the world, with stocks rallying and currencies and bonds little budged following the US intervention in Venezuela and the capture of President Nicolas Maduro.

Also on traders’ radar, China on Tuesday banned exports of dual-use items to Japan that can be used for military purposes, marking Beijing’s latest move in reaction to an early November remark by Japanese Prime Minister Sanae Takaichi about Taiwan.

Currencies were largely subdued in early Asia trade, with the Australian dollar the main mover as it fell 0.3% to a session low of $0.6717 in the wake of inflation data which undershot expectations, though it soon clawed back those losses.

Sterling was flat at $1.3502, while the Japanese yen was a touch stronger at 156.63.

Overall, currency traders were in a wait-and-see mode ahead of a batch of US labour market data, with figures on private payrolls and job openings due later in the day, before Friday’s closely watched nonfarm payrolls report comes due.

Ahead of the outcome, the dollar index was little changed at 98.58, while the New Zealand dollar last bought $0.5784.

Oil prices, a key indicator of currency parity, extended declines on Wednesday as investors digested statements from President Donald Trump that the U.S. had reached a deal to import up to $2 billion worth of Venezuelan crude, a move that would increase supplies to the world’s largest oil consumer.

Brent crude futures lost 14 cents, or 0.2%, to $60.56 a barrel by 1335 GMT, after earlier in the session falling to $59.88 a barrel. U.S. West Texas Intermediate crude fell 36 cents, or 0.6%, to $56.77 a barrel, after dropping to as low as $55.76.

Both benchmarks dropped over $1 during the previous trading session, as market participants expected ample global supply this year.

Inter-bank market rates for dollar on Wednesday

BID                            Rs 280.06

OFFER                      Rs 280.26

Open-market movement

In the open market, the PKR gained 4.00 paisa for buying and remained unchanged for selling against USD, closing at 280.43 and 281.10, respectively.

Against Euro, the PKR gained 84.00 paisa for buying and 82.00 paisa for selling, closing at 327.46 and 330.63, respectively.

Against UAE Dirham, the PKR remained unchanged for buying and lost 1.00 paisa for selling, closing at 76.47 and 77.25, respectively.

Against Saudi Riyal, the PKR gained 2.00 paisa for buying and remained unchanged for selling, closing at 74.80 and 75.41, respectively.

Open-market rates for dollar on Wednesday

BID Rs 280.43

OFFER Rs 281.10