Rupee falls marginally against US dollar

The Pakistani rupee registered a marginal decline, depreciating 0.02% against the US dollar in the inter-bank market on Tuesday.

At close, the currency settled at 278.70, a loss of Re0.06, against the greenback.

On Monday, the local unit closed at 278.64 against the greenback, according to the State Bank of Pakistan (SBP).

In recent months, the domestic currency has largely been around 277-279 against the dollar as traders keep an eye on some strong positive indicators.

Globally, the US dollar was in limbo on Tuesday as investors waited to see how US economic data affected the chance of outsized rate cuts, while a rally in Japanese stocks helped staunch the bleeding in yen carry trades.

The greenback was idling at 147.17 yen, having briefly touched a one-week high of 148.23 overnight before profit-taking emerged.

The dollar index was flat at 103.08. Producer price figures due later will provide an appetizer for the main inflation report on Wednesday, and could move markets since they feed through to the core personal consumption (PCE) measure favoured by the Federal Reserve.

Forecasts are for a 0.2% rise in both the headline PPI and the core measure.

Oil prices, a key indicator of currency parity, were stable on Tuesday as supply risks arising from expectations of widening Middle Eastern conflict were tempered by demand concerns after OPEC on Monday cut its forecast for demand growth in 2024.

Benchmark Brent crude futures were down 8 cents, or 0.10%, at $82.22 a barrel as of 1030 GMT. U.S. West Texas Intermediate crude was down 1 cent, or 0.01%, at $80.05.

Both benchmarks had risen for five straight sessions till Monday.

Downside potential in oil prices could be limited as geopolitical tensions persist, contributing to market uncertainty and supporting crude prices, said Li Xing Gan, financial markets strategist at Exness.

Brent on Monday gained more than 3%, while U.S. crude futures rose more than 4%.

Inter-bank market rates for dollar on Tuesday

BID                            Rs 278.70

OFFER                      Rs 278.90

Open-market movement

In the open market, the PKR lost 9 paise for buying and remained unchanged for selling against USD, closing at 279.46 and 280.40, respectively.

Against Euro, the PKR lost 38 paise for buying and 48 paise for selling, closing at 304.45 and 305.86, respectively.

Against UAE Dirham, the PKR lost 2 paise for buying and remained unchanged for selling, closing at 75.92 and 76.35, respectively.

Against Saudi Riyal, the PKR remained unchanged for both buying and selling, closing at 74.11 and 74.55, respectively.

Open-market rates for dollar on Tuesday

BID                            Rs 279.46

OFFER                      Rs 280.40