Rupee registers marginal loss against US dollar

The Pakistani rupee registered a marginal decline against the US dollar, depreciating 0.03% in the inter-bank market on Tuesday.

At close, the local unit settled at 278.39, a loss of Re0.09 against the greenback, as per the State Bank of Pakistan (SBP).

On Monday, the rupee had also closed at 278.30, down by Re0.09.

The federal government is set to present the budget for the next financial year 2024-25 in the National Assembly on June 7 (Friday). The upcoming budget session will start on June 6 (Thursday) and the federal government will present Budget-2024-25 in the National Assembly on June 7 (Friday).

Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb will present the Budget-2024-25 in the National Assembly.

Globally, the US dollar was firm on Tuesday while the yen struggled on the weaker side of the 156 level, though trade was mostly range bound as investors generally stuck to their views of the expected timing and extent of Federal Reserve rate cuts this year.

Cryptocurrencies rallied, led by a surge in ether on growing anticipation of an impending approval of spot ether exchange-traded funds (ETFs) by the US Securities and Exchange Commission (SEC).

With little on the US economic data calendar this week to guide the direction of currency moves, focus turns to a slew of Fed speakers for clues on the US rate outlook and how soon an easing cycle could begin.

Against a basket of currencies, the dollar steadied at 104.61.

Oil prices, a key indicator of currency parity, extended losses in Asia trade on Tuesday, with investors anticipating lingering US inflation and higher interest rates to depress consumer and industrial demand. Brent crude futures fell 57 cents, or 0.68%, to $83.14 a barrel by 0613 GMT.

US West Texas Intermediate crude (WTI) slipped 58 cents, or 0.73%, to $79.22 a barrel.

Both benchmarks fell less than 1% on Monday as US Federal Reserve officials said they were awaiting more signs of slowing inflation before considering interest rate cuts.

Inter-bank market rates for dollar on Tuesday

BID                            Rs 278.39

OFFER                      Rs 278.59

Open-market movement

In the open market, the PKR gained 5 paise for buying and 11 paise for selling against USD, closing at 276.91 and 279.43, respectively.

Against Euro, the PKR gained 56 paise for buying and 55 paise for selling, closing at 299.25 and 302.15, respectively.

Against UAE Dirham, the PKR gained 6 paise for buying and 5 paise for selling, closing at 75.21 and 75.94, respectively.

Against Saudi Riyal, the PKR gained 6 paise for buying and 4 paise for selling, closing at 73.46 and 74.15, respectively.

Open-market rates for dollar on Tuesday

BID                            Rs 276.91

OFFER                      Rs 279.43