Rupee largely stable against US dollar

The Pakistani rupee remained largely stable, appreciating 0.01% against the US dollar in the inter-bank market on Wednesday.

At close, the local unit settled at 278.10, a gain of Re0.02 against the greenback, as per the State Bank of Pakistan (SBP).

On Tuesday, the rupee closed at 278.12, up by Re0.12.

In a key development, Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb said the government intends to introduce pension reforms, part of its strategy to implement structural changes, ahead of inking a new deal with the International Monetary Fund (IMF).

Internationally, the US dollar was back on the front foot on Wednesday, making modest gains after earlier losses from renewed bets on Federal Reserve rate cuts this year, while the yen eased towards the 155 per dollar level and kept intervention risks from Tokyo high.

The offshore yuan further retreated from a more than three-month high hit last week, helped by hopes of further policy stimulus from Beijing to shore up its economy.

It last stood at 7.2247 per dollar.

Investors continue to be focused on the pace and timing of Fed rate cuts that will likely drive currency moves, with the latest weaker-than-expected US jobs data and an easing bias from the US central bank cementing expectations that rates will likely be lower by the end of the year.

Oil prices, a key indicator of currency parity, fell on Wednesday as industry data showed a rise in crude and fuel inventories in the US and as the US dollar strengthened, signalling that oil demand is coming under pressure.

Brent crude oil futures fell $1.11, or 1.3%, to $82.05 a barrel by 0955 GMT.

US West Texas Intermediate crude futures fell $1.15, or 1.5%, to $77.23 a barrel.

Both benchmarks fell marginally in the previous session on signs of easing supply tightness and weaker global oil demand from an EIA forecast report on Tuesday.

Inter-bank market rates for dollar on Wednesday

BID                            Rs 278.10

OFFER                      Rs 278.30

Open-market movement

In the open market, the PKR lost 16 paisa for buying and 5 paisa for selling against USD, closing at 276.57 and 279.14, respectively.

Against Euro, the PKR gained 44 paisa for buying and 42 paisa for selling, closing at 295.19 and 297.93, respectively.

Against UAE Dirham, the PKR remained unchanged for buying and lost 2 paisa for selling, closing at 75.00 and 75.72, respectively.

Against Saudi Riyal, the PKR lost 1 paisa for buying and 3 paisa for selling, closing at 73.30 and 73.96, respectively.

Open-market rates for dollar on Wednesday

BID                            Rs 276.57

OFFER                      Rs 279.14