Rupee gains marginally against US dollar

The Pakistani rupee increased a marginal 0.02% against the US dollar in the inter-bank market on Wednesday.

At close, the local unit settled at 279.5 after a gain of Re0.05 against the greenback, as per the State Bank of Pakistan (SBP).

On Tuesday also, the rupee had registered a marginal increase to settle at 279.55 against the US dollar, according to the SBP.

In a key development, the caretaker federal cabinet approved reorganisation and digitisation of the Federal Board of Revenue (FBR) after the recommendations of the inter-ministerial committee headed by the finance minister were presented.

The cabinet meeting presided over by the caretaker Prime Minister Anwaar-ul-Haq Kakar on Tuesday decided to approve the reorganisation and digitisation of the FBR on the recommendation of the Revenue Division.

In light of these reforms, the Federal Tax Policy Board will be formed in the Revenue Division, which will be responsible for the formulation of tax policy in the country, determination of revenue targets and cooperation between stakeholders. The Federal Policy Board will be headed by the federal finance minister.

As a result of the restructuring, Customs and Inland Revenue will be headed, separately, by Director Generals of the respective cadre.

Internationally, the US dollar headed for its biggest monthly gain since September and the yen for its sharpest drop in nearly a year on Wednesday, as traders waited on a US rates decision to round out January.

The dollar has gained 2% against a basket of major currencies this month as markets dialed back expectations on the speed and scale of rate cuts in the face of strong US economic data and pushback from central bankers.

The dollar index last sat at 103.36.

Oil prices, a key indicator of currency parity, fell on Wednesday as lacklustre economic data in China, the world’s biggest crude importer, weighed on demand sentiment, but prices were set for their first monthly gain since September as broadening Middle East conflicts raised supply concerns.

Brent crude futures for March, which expires today, fell 27 cents, or 0.3%, to $82.60 a barrel by 0441 GMT.

The more actively-traded April contract fell 26 cents to $82.24.

US West Texas Intermediate crude futures declined 23 cents, or 0.3%, to $77.59 a barrel.

Inter-bank market rates for dollar on Wednesday

BID                            Rs 279.50

OFFER                      Rs 279.70

Open-market movement

In the open market, the PKR lost 16.00 paisa for buying and remained unchanged for selling against USD, closing at 278.87 and 280.86, respectively.

Against Euro, the PKR lost 6.00 paisa for buying and 5.00 paisa for selling, closing at 301.46 and 304.07, respectively.

Against UAE Dirham, the PKR lost 1.00 paisa for buying and gained 1.00 paisa for selling, closing at 76.18 and 76.87, respectively.

Against Saudi Riyal, the PKR lost 1.00 paisa for buying and gained 1.00 paisa for selling, closing at 74.35 and 75.00, respectively.

Open-market rates for dollar on Wednesday

BID                            Rs 278.87

OFFER                      Rs 280.86