Rupee sees marginal improvement against US dollar

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

At close, the local unit settled at 278.51, a gain of Re0.08 against the greenback.

On Thursday, the rupee had closed at 278.59 after a gain of Re0.02.

In recent weeks, the domestic currency has largely been around 277-279 against the dollar as Pakistan moves forward with its plan to win a longer and larger International Monetary Fund (IMF) bailout programme.

Globally, the US dollar was on the front foot, helped by gains against the euro and safe-haven bids as France’s snap vote call stoked fears of political uncertainty in the country and the wider euro zone bloc.

In the broader market, major currencies were struggling to make headway against a slightly stronger greenback on Friday, with sterling edging 0.08% lower to $1.2752.

It was set for a weekly gain of 0.3%.

Data on Thursday showed the number of Americans filing new claims for unemployment benefits increased to a 10-month high last week while separate data pointed to producer prices unexpectedly falling in May, adding to bets the Fed could kick off its easing cycle in September.

The figures followed Wednesday’s US inflation reading which showed consumer prices were unexpectedly unchanged in May.

While the Fed, at the conclusion of its monetary policy meeting this week, struck a more hawkish tone than expected and projected only one rate cut for 2024, investors chose to focus on the softer-than-expected data instead, which has in turn sent Wall Street charging to record highs and Treasury yields falling.

Oil prices, a key indicator of currency parity, were stable on Friday and on course for their best week in more than two months after solid projections for crude oil and fuel demand.

Brent crude futures were down 19 cents, or 0.23%, at $82.56 a barrel by 1003 GMT.

West Texas Intermediate (WTI) US crude futures lost 32 cents, or 0.41%, to $78.30.

Brent and the US benchmark had gained nearly 4% over the week.

Inter-bank market rates for dollar on Friday

BID                            Rs 278.51

OFFER                      Rs 278.71

Open-market movement

In the open market, the PKR gained 5 paise for buying and remained unchanged for selling against USD, closing at 277.61 and 280.25, respectively.

Against Euro, the PKR gained 2.17 rupees for buying and 2.21 rupees for selling, closing at 294.07 and 296.87, respectively.

Against UAE Dirham, the PKR remained unchanged for buying and gained 1 paisa for selling, closing at 74.84 and 75.55, respectively.

Against Saudi Riyal, the PKR gained 1.00 paisa for buying and 2 paise for selling, closing at 72.79 and 73.49, respectively.

Open-market rates for dollar on Friday

BID                            Rs 277.61

OFFER                      Rs 280.25