Rupee records marginal gain against US dollar
- Currency settles at 277.76 against greenback in inter-bank market
The Pakistani rupee recorded a marginal gain against the US dollar, appreciating 0.07% in the inter-bank market on Friday.
At close, the currency settled at 277.76, a gain of Re0.20 against the greenback.
On Thursday, the rupee had settled at 277.96, according to the State Bank of Pakistan (SBP).
Internationally, the US dollar stuck close to a 13-month high on Friday as investors assessed the outlook for the Federal Reserve’s interest rate path and uncertainty in Europe kept the euro on the back foot, while bitcoin eyed the $100,000 level.
The yen, meanwhile, held its ground against the greenback after domestic core inflation figures remained above the Bank of Japan’s (BOJ) 2% target in a sign conditions for further interest rate hikes were falling in place.
The US dollar index edged down 0.05% to 107.01, not far off Thursday’s one-year high of 107.15, its highest level since Oct. 4, 2023, with little data this week to dent its march higher.
Data overnight showed US weekly initial jobless claims unexpectedly dropped to a seven-month low but also indicated some slack as it is taking longer for the unemployed to find new jobs, giving the Fed cushion to cut rates again in December.
The US dollar has rallied around 3% so far this month on expectations that US President-elect Donald Trump’s policies could reignite inflation and limit the Fed’s ability to cut rates.
Recent comments from Fed officials, including Chair Jerome Powell, have indicated the central bank may take a slower course in its rate cut path.
Oil prices, a key indicator of currency parity, inched higher on Friday, on track for a weekly rise of more than 4%, as the Ukraine war intensified, with Russian President Vladimir Putin warning of a global conflict.
Brent crude futures climbed 17 cents, or 0.2%, to $74.40 a barrel by 0722 GMT.
US West Texas Intermediate crude futures rose 20 cents, or 0.3%, to $70.30 per barrel.
Inter-bank market rates for dollar on Friday
BID Rs 277.76
OFFER Rs 277.96
Open-market movement
In the open market, the PKR gained 11 paise for buying and 17 paise for selling against USD, closing at 276.98 and 278.77, respectively.
Against Euro, the PKR gained 3.51 rupees for both buying and selling, closing at 286.87 and 289.62, respectively.
Against UAE Dirham, the PKR gained 6 paise for buying and 1 paisa for selling, closing at 75.26 and 76.00, respectively.
Against Saudi Riyal, the PKR gained 4 paise for buying and 3 paise for selling, closing at 73.52 and 74.20, respectively.
Open-market rates for dollar on Friday
BID Rs 276.98
OFFER Rs 278.77
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