Rupee falls marginally against US dollar

The Pakistani rupee recorded a marginal decline against the US dollar, depreciating 0.01% in the inter-bank market on Wednesday.

At close, the local unit settled at 279.35, a loss of Re0.04, against the greenback, as per the State Bank of Pakistan (SBP).

On Tuesday, the rupee registered a marginal decline to settle at 279.31 against the US dollar, according to the SBP.

In a key development, Muhammad Aurangzeb, the chief executive officer of HBL, is likely to be tapped for a top position in the finance team of newly elected Prime Minister Shehbaz Sharif.

Pakistan urgently needs a fresh IMF agreement to shore up its struggling $350 billion economy which is suffering from high inflation, low reserves and high external financing needs.

Internationally, the US dollar was largely steady on Wednesday, as traders avoided making big bets ahead of congressional testimony from Federal Reserve Chair Jerome Powell, as well as the European Central Bank rate decision and US jobs data later this week.

In cryptocurrencies, bitcoin was slightly up but stayed below a record high reached in a volatile overnight session.

The absence of catalysts kept the dollar in a tight range, having slipped overnight on data that showed the US services industry growth slowed a bit last month.

The dollar index, which measures the greenback’s strength against a basket of six currencies, hovered around 103.84.

Oil prices, a key indicator of currency parity, rebounded slightly on Wednesday after four days of declines as signs of supply tightness amid output cuts by major producers overrode demand concerns in China and the US, the world’s two biggest crude consumers.

Brent crude futures were up 53 cents, or 0.65%, to $82.57 a barrel at 0922 GMT, while US West Texas Intermediate crude futures rose 64 cents, or 0.82%, to $78.79 a barrel, after declining the past two days.

China’s 2024 economic growth target of around 5% set on Tuesday lacked big-ticket stimulus plans to bolster its struggling economy, raising concerns of sluggish oil demand growth.

Inter-bank market rates for dollar on Wednesday

BID Rs 279.35

OFFER Rs 279.55

Open-market movement

In the open market, the PKR lost 2.00 paisa for buying and gained 5.00 paisa for selling against USD, closing at 279.47 and 282.00, respectively.

Against Euro, the PKR lost 22.00 paisa for buying and 7.00 paisa for selling, closing at 302.08 and 304.81, respectively.

Against UAE Dirham, the PKR remained unchanged for buying and gained 2.00 paisa for selling, closing at 75.95 and 76.68, respectively.

Against Saudi Riyal, the PKR gained 1.00 paisa for buying and 3.00 paisa for selling, closing at 74.19 and 74.86, respectively.

Open-market rates for dollar on Wednesday

BID Rs 279.47

OFFER Rs 282.00