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Markets

Rupee improves marginally against US dollar

  • Currency settles at 278.21 against US dollar in inter-bank market
Published May 3, 2024

The Pakistani rupee registered a marginal improvement, appreciating 0.03% against the US dollar in the inter-bank market on Friday.

At close, the local unit settled at 278.21, a gain of Re0.09 against the greenback, as per the State Bank of Pakistan (SBP).

On Thursday, the rupee closed at 278.3, up by Re0.01.

In a key development, Minister for Investment and Privatisation Abdul Aleem Khan said that Islamabad would push back the deadline for companies to express interest in buying national carrier Pakistan International Airlines to May 18.

The extension came a day before the expressions of interest had originally been due. He said 10 companies had already expressed an interest.

Pakistani tycoon Arif Habib and aviation-based company Gerry’s Group were among the 10 bidders looking to buy a majority stake in Pakistan International Airlines.

Globally, the US dollar was broadly on the back foot on Friday.

Against a basket of currencies, the dollar, which has struggled to regain its footing in the wake of the less-hawkish-than-feared Fed comments, was little changed at 105.32.

The dollar index was on track to lose 0.7% for the week, its worst performance since March.

Oil prices, a key indicator of currency parity, edged higher on Friday, but headed for their steepest weekly loss in three months as uncertainty about demand and high interest rates drove a sell-off limited by the prospect OPEC+ will continue to curb output.

Brent crude futures for July rose 31 cents, or 0.4%, to $83.98 a barrel by 0755 GMT.

US West Texas Intermediate crude for June was up 26 cents, or 0.3%, to $79.21 per barrel.

Both benchmarks are set for weekly losses as investors are concerned higher-for-longer interest rates will curb economic growth in the US, the world’s leading oil consumer, as well as in other parts of the world.

Brent was on course for a 6.2% weekly decline, and WTI for a loss of 5.6% on the week.

Inter-bank market rates for dollar on Friday

BID Rs 278.21

OFFER Rs 278.41

Open-market movement

In the open market, the PKR gained 22.00 paisa for buying and 17.00 paisa for selling against USD, closing at 276.82 and 279.48, respectively.

Against Euro, the PKR lost 33.00 paisa for buying and 25.00 paisa for selling, closing at 294.78 and 297.48, respectively.

Against UAE Dirham, the PKR gained 3.00 paisa for both buying and selling, closing at 74.98 and 75.70, respectively.

Against Saudi Riyal, the PKR gained 4.00 paisa for both buying and selling, closing at 73.26 and 73.92, respectively.

Open-market rates for dollar on Friday

BID Rs 276.82

OFFER Rs 279.48

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