Rupee sustains minor loss against US dollar

The Pakistani rupee recorded a marginal decline against the US dollar, depreciating 0.03% in the inter-bank market on Thursday.

At close, the local unit settled at 278.48, a loss of Re0.09 against the greenback, as per the State Bank of Pakistan (SBP).

On Wednesday, the rupee closed at 278.39, lower by Re0.01.

In a key development, the International Monetary Fund (IMF) said on Wednesday that its Executive Board would meet on April 29 to discuss the approval of $1.1-billion funding for Pakistan.

Moreover, United States Ambassador Donald Blome commended the new economic team of Pakistan and expressed optimism regarding the ongoing discussions between Pakistan and the IMF, the Senate Secretariat said here on Wednesday.

Internationally, the US dollar strengthened against the yen on Thursday, a level seen as authorities’ line in the sand that heightens the chance of currency intervention.

The US dollar rose as high as 155.37 yen on Wednesday, its strongest since mid-1990, before falling back in choppy trading. It was last at 155.29 in Asia on Thursday.

Oil prices, a key indicator of currency parity, steadied on Thursday after settling lower the previous day as signs of retreating fuel demand in the US, the world’s biggest oil user, contended with widening conflict risks in the Middle East.

This week’s supply report from the US Energy Information Administration (EIA) on Wednesday showed gasoline stockpiles fell less than forecast while distillate stockpiles rose against expectations of a decline, reflecting signs of slowing demand.

Brent crude futures rose 29 cents, or 0.3%, to $88.31 a barrel at 0805 GMT, while US West Texas Intermediate crude futures gained 25 cents, or 0.3%, to $83.06.

Inter-bank market rates for dollar on Thursday

BID                            Rs 278.48

OFFER                      Rs 278.68

Open-market movement

In the open market, the PKR gained 18.00 paisa for buying and 13.00 paisa for selling against USD, closing at 277.01 and 279.69, respectively.

Against Euro, the PKR lost 29.00 paisa for buying and 19.00 paisa for selling, closing at 294.33 and 297.04, respectively.

Against UAE Dirham, the PKR remained unchanged for buying and gained 1.00 paisa for selling, closing at 75.00 and 75.72, respectively.

Against Saudi Riyal, the PKR remained unchanged for buying and gained 3.00 paisa for selling, closing at 73.26 and 73.92, respectively.

Open-market rates for dollar on Thursday

BID                            Rs 277.01

OFFER                      Rs 279.69