Rupee largely stable against US dollar

The Pakistani rupee remained largely stable against the US dollar during trading in the inter-bank market on Thursday.

At close, the local unit settled at 278.03, up by Re0.01 against the greenback, as per the State Bank of Pakistan (SBP).

On Wednesday, the rupee registered marginal improvement to settle at 278.04 against the US dollar, according to the SBP.

Internationally, the US dollar received a boost against major currency peers on Thursday, as a Federal Reserve official said he wasn’t in a hurry to cut rates amid sticky inflation, and as traders braced for key economic data.

Speaking during late US trading hours on Wednesday, Federal Reserve Governor Christopher Waller said recent disappointing inflation data affirms the case for the US central bank holding off on cutting its short-term interest rate target.

The dollar index, a measure of the greenback against major peer currencies, ticked up in the wake of Waller’s comments and last held mostly unchanged at 104.41.

It’s gained around 3% so far in 2024. Market expectations for the first rate cut to occur at the Fed’s June meeting have eased somewhat, currently pricing in a 60% chance compared to 67% around this time last week, according to the CME FedWatch tool.

Oil prices, a key indicator of currency parity, edged up on Thursday, following two consecutive sessions of decline, as investors reassessed the latest data on US crude oil and gasoline inventories and returned to buying mode.

Brent crude futures for May were up 40 cents, or 0.5%, at $86.49 a barrel while the more actively traded June contract rose 36 cents, or 0.4%, to $85.77 at 0757 GMT.

The May contract expires on Thursday.

US West Texas Intermediate (WTI) crude futures for May delivery were up 44 cents, or 0.5%, to $81.79 a barrel. Both benchmarks were on track to finish higher for a third consecutive month, and were up about 4.5% from last month.

Inter-bank market rates for dollar on Thursday

BID                            Rs 278.03

OFFER                      Rs 278.23

Open-market movement

In the open market, the PKR gained 2.00 paisa for buying and 19.00 paisa for selling against USD, closing at 278.04 and 280.41, respectively.

Against Euro, the PKR gained 28.00 paisa for buying and 30.00 paisa for selling, closing at 298.99 and 301.90, respectively.

Against UAE Dirham, the PKR remained unchanged for buying and lost 2.00 paisa for selling, closing at 75.45 and 76.16, respectively.

Against Saudi Riyal, the PKR lost 1.00 paisa for both buying and selling, closing at 73.70 and 74.39, respectively.

Open-market rates for dollar on Thursday

BID                            Rs 278.04

OFFER                      Rs 280.41