The Pakistani rupee recorded marginal improvement against the US dollar in the inter-bank market on Tuesday.
At close, the local currency settled at 279.91, a gain of Re0.01 against the greenback.
On Monday, the local unit closed at 279.92.
Internationally, the US dollar retreated to its lowest level in a week in early trading on Tuesday after threats from the White House towards the European Union over the future of Greenland triggered a broad selloff across US stocks and government bonds.
The dollar index, which measures the greenback’s strength against a basket of six currencies, slid 0.1% to 99.004 - its lowest level since January 14, as investors worried about exposure to US markets.
On Monday, US President Donald Trump’s renewed tariff threats against European allies triggered a repeat of the so-called “Sell America” trade that emerged after last year’s Liberation Day tariff announcement in April, with stocks, Treasury bonds, and the dollar all selling off. US markets will return on Tuesday following a public holiday for Martin Luther King Jr. Day.
The yield on the US 10-year Treasury bond increased by 3.0 basis points to 4.2586%. Fed funds futures are pricing an implied 94.5% probability that the US central bank will remain on hold at its next two-day meeting next week, little changed from Friday, according to the CME Group’s FedWatch tool.
Oil prices, a key indicator of currency parity, were slightly higher on Tuesday as investors monitored US President Donald Trump’s tariff threats against European states opposing his push to acquire Greenland, while firmer global economic growth expectations and a weaker US dollar supported prices.
Brent futures gained 49 cents, or 0.77%, to $64.43 a barrel at 1253 GMT, while US West Texas Intermediate crude was up 56 cents, or 0.94%, at $60.
Inter-bank market rates for dollar on Tuesday
BID Rs 279.91
OFFER Rs 280.11
Open-market movement
In the open market, the PKR lost 5 paise for buying and 14 paise for selling against USD, closing at 280.42 and 281.32, respectively.
Against Euro, the PKR lost 1.68 rupee for buying and 1.51 rupee for selling, closing at 327.59 and 330.55, respectively.
Against UAE Dirham, the PKR gained 2 paise for buying and remained unchanged for selling, closing at 76.53 and 77.30, respectively.
Against Saudi Riyal, the PKR lost 1 paisa for both buying and selling, closing at 74.84 and 75.46, respectively.
Open-market rates for dollar on Tuesday
BID Rs 280.42
OFFER Rs 281.32