Rupee falls marginally against US dollar

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

At close, the local unit settled at 278.6, a loss of Re0.09 against the greenback.

It is pertinent to mention that the currency market remained closed from June 17 to 19 on account of Eid-ul-Adha holidays.

During the previous week, the rupee decreased marginally as it lost Re0.31 or 0.11% against the US dollar. The local unit closed at 278.51, against 278.20 it had closed the week earlier against the greenback, according to the State Bank of Pakistan (SBP).

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.

Internationally, the US dollar was on the back foot as it awaited fresh market catalysts.

Currencies were trading in tight ranges following a holiday in the United States and as investors looked not only to the BoE but also central bank decisions in Switzerland and Norway.

The US dollar slipped 0.05% against the yen to 157.99, though the Japanese currency remained not too far from an over one-month low of 158.255 per dollar hit last week.

Against a basket of currencies, the greenback was little changed at 105.23, some distance away from last week’s one-month top.

Oil prices, a key indicator of currency parity, were steady on Thursday, hovering slightly below seven-week highs as the market awaited US inventory data. August Brent crude rose by 32 cents, or 0.38%, to $85.39 per barrel by 0837 GMT.

US West Texas Intermediate futures (WTI) for July, which expire on Thursday, dipped 25 cents, or 0.31%, to $81.32.

There was no WTI settlement on Wednesday because of a US public holiday, which kept trading largely subdued.

The more active August contract rose by 10 cents, or 0.12%, to $80.81 a barrel.

Inter-bank market rates for dollar on Thursday

BID                            Rs 278.60

OFFER                      Rs 278.80

Open-market movement

In the open market, the PKR lost 3 paise for buying and 12 paise for selling against USD, closing at 277.61 and 280.32, respectively.

Against Euro, the PKR lost 1.39 rupee for buying and 1.46 rupee for selling, closing at 294.65 and 297.55, respectively.

Against UAE Dirham, the PKR lost 5 paise for buying and 6 paise for selling, closing at 74.90 and 75.62, respectively.

Against Saudi Riyal, the PKR lost 21 paise for both buying and selling, closing at 72.99 and 73.70, respectively.

Open-market rates for dollar on Thursday

BID                            Rs 277.61

OFFER                      Rs 280.32