Rupee largely stable against US dollar

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

At close, the local unit settled at 278.38, a gain of Re0.02 against the greenback.

On Wednesday, the rupee had closed at 278.40 after a gain of Re0.10.

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.

In a key development, the National Assembly approved 117 demands for grants worth Rs6.87 trillion to meet expenditures of various federal ministries and their departments during the financial year ending June 30, 2025 by rejecting all the cut motions of opposition.

Globally, the yen languished near a 38-year low on Thursday and struggled on the weaker side of 160 per dollar, keeping markets on alert for any signs of intervention from Japanese authorities to prop up the currency.

In the broader market, the dollar was on the front foot and stood near an eight-week high against a basket of currencies, helped in part by a weaker yen and as it rose in step with US Treasury yields.

The dollar index meanwhile hovered near a roughly two-month high and steadied at 106.05, drawing support from elevated US Treasury yields.

Oil prices, a key indicator of currency parity, were largely steady on Thursday as a surprise build in US stockpiles fuelled fears about slow demand from the world’s top oil consumer and countered supply concerns stoked by escalating conflict in the Middle East.

Brent crude oil futures were up 43 cents, or 0.5%, at $85.68 a barrel by 0850 GMT.

US West Texas Intermediate crude futures rose 42 cents, or 0.5%, to $81.32. Both benchmarks had settled slightly higher on Wednesday.

The US Energy Information Administration (EIA) reported a 3.6 million barrel jump in the country’s crude oil stocks last week.

Inter-bank market rates for dollar on Thursday

BID                            Rs 278.38

OFFER                      Rs 278.58

Open-market movement

In the open market, the PKR gained 11 paise for buying and 9 paise for selling against USD, closing at 277.55 and 280.18, respectively.

Against Euro, the PKR gained 1.09 rupee for buying and 1.19 rupee for selling, closing at 293.45 and 296.25, respectively.

Against UAE Dirham, the PKR gained 18 paise for both buying and selling, closing at 74.92 and 75.65, respectively.

Against Saudi Riyal, the PKR gained 6 paise for buying and 5 paise for selling, closing at 73.03 and 73.74, respectively.

Open-market rates for dollar on Thursday

BID                            Rs 277.55

OFFER                      Rs 280.18