Rupee registers marginal decline against US dollar

The Pakistani rupee registered a marginal decline, depreciating 0.04% against the US dollar in the inter-bank market on Thursday.

At close, the local unit settled at 278.50, a decline of Re0.10 against the greenback, according to the State Bank of Pakistan (SBP).

On Wednesday, the local unit settled at 278.40 against the US dollar.

In a key development, the International Monetary Fund (IMF) on Wednesday appreciated Pakistan’s tough economic decisions and efforts regarding hike in gas prices.

According to sources, Pakistan and the IMF held virtual talks on the efforts made in the budget to meet the conditions. The IMF was briefed on the measures taken by Pakistan to increase gas prices and other tough economic decisions in the budget, sources added.

The sources disclosed that an important development was expected towards the end of the ongoing month as far as the new loan programme for Pakistan was concerned. The volume of the programme, which would be for a three-year period, could be between $6 billion and $8 billion.

Globally, the US dollar was on the backfoot on Thursday after US economic data continued to point to slowing growth, although that gave little relief to the yen, which was pinned around a 38-year low that kept the market on alert for government intervention.

The euro held not far off a three-week high against the greenback, and sterling firmed ahead of UK elections later in the day.

The dollar index, which measures the greenback against a basket of peer currencies, was flat at 105.28 after briefly weakening to its lowest since June 13 at 105.04 on Wednesday.

Oil prices, a key indicator of currency parity, edged lower on Thursday, retreating from the previous session’s multi-month highs, with investors taking profits as demand caution remained in focus despite last week’s decline in US inventories.

Brent crude futures were down 43 cents, or 0.49%, at $86.91 a barrel by 0855 GMT while US West Texas Intermediate (WTI) crude futures fell 49 cents, or 0.58%, to $83.39 in trade thinned by the US Independence Day holiday.

In the previous session, Brent gained 1.3% to settle at $87.34 for its highest since April 30.

WTI, meanwhile, had settled at an 11-week high of $83.88.

Inter-bank market rates for dollar on Thursday

BID Rs 278.50

OFFER Rs 278.70

Open-market movement

In the open market, the PKR lost 5.00 paisa for buying and gained 2.00 paisa for selling against USD, closing at 277.75 and 280.23, respectively.

Against Euro, the PKR lost 1.96 rupee for buying and 2.00 rupees for selling, closing at 297.13 and 300.02, respectively.

Against UAE Dirham, the PKR lost 18.00 paisa for both buying and selling, closing at 75.19 and 75.92, respectively.

Against Saudi Riyal, the PKR lost 20.00 paisa for buying and 19.00 paisa for selling, closing at 73.40 and 74.09, respectively.

Open-market rates for dollar on Thursday

BID Rs 277.75

OFFER Rs 280.23