Rupee sees marginal improvement against US dollar

The Pakistani rupee registered a marginal gain against the US dollar, appreciating 0.11% in the inter-bank market on Wednesday.

At close, the local unit settled at 278.79, a gain of Re0.29, against the greenback, as per the State Bank of Pakistan (SBP).

On Monday, the rupee registered a marginal decline to settle at 279.08 against the US dollar, according to the State Bank of Pakistan (SBP).

It is pertinent to mention that the currency market was closed on Tuesday.

Meanwhile, Finance Minister Muhammad Aurangzeb, during an interaction with a group of media persons, stated that Pakistan is eager to negotiate a larger and longer Extended Fund Facility (EFF) of the International Monetary Fund (IMF) programme to achieve macroeconomic stability in the country.

However, he did not specify the amount Pakistan would be looking forward to requesting the Fund and stated it would be premature to specify it at this point in time.

Aurangzeb highlighted his priorities as finance minister and stated that GDP growth is directly linked to macroeconomic stability.

Internationally, the US dollar held steady against a handful of rival currencies on Wednesday, as traders weighed what impact hotter-than-expected inflation data could have on chances of an interest rate cut at the Federal Reserve’s June meeting.

The US consumer price index (CPI) increased solidly in February, beating forecasts and suggesting some stickiness in inflation.

Although the CPI rose 0.4% in February in line with forecasts, a 3.2% year-on-year gain came in just ahead of an expected 3.1% increase.

The dollar index, which measures the greenback against a basket of peer currencies, was little changed at 102.91.

Oil prices, a key indicator of currency parity, rose on Wednesday on expectations of strong global demand, including in the world’s top consumer the United States, while somewhat sticky US inflation did not significantly alter expectations that the Fed might start cutting rates soon.

Brent futures for May rose 28 cents, or 0.3%, to $82.20 a barrel by 0730 GMT.

April US West Texas Intermediate crude contract gained 28 cents, or 0.4%, to $77.84.

Inter-bank market rates for dollar on Wednesday

BID                            Rs 278.79

OFFER                      Rs 278.99

Open-market movement

In the open market, the PKR gained 26.00 paisa for buying and 25.00 paisa for selling against USD, closing at 278.57 and 281.22, respectively.

Against Euro, the PKR gained 42.00 paisa for buying and 38.00 paisa for selling, closing at 302.95 and 305.95, respectively.

Against UAE Dirham, the PKR lost 11.00 paisa for buying and 10.00 paisa for selling, closing at 75.70 and 76.43, respectively.

Against Saudi Riyal, the PKR gained 21.00 paisa for both buying and selling, closing at 73.94 and 74.65, respectively.

Open-market rates for dollar on Wednesday

BID                            Rs 278.57

OFFER                      Rs 281.22