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 Wednesday.

At close, the currency settled at 278.50, a loss of Re0.09, against the greenback.

On Tuesday, the currency had settled at 278.41 against the US dollar.

In recent weeks, the domestic currency has largely been around 277-279 against the dollar.

Globally, commodity currencies touched multi-week lows on Wednesday tracking weakness in Chinese demand, while the yen has surged as short-sellers bailout ahead of a central bank meeting.

Purchasing managers’ index figures will be particularly watched in Europe later in the session to see whether they support bets on two European rate cuts by the end of January.

Markets price a 44% chance of a 10 basis point rate hike in Japan next week and speculators, having also been rumbled by a few rounds of suspected currency intervention from Japan, are closing what had been profitable “carry trades” funded in yen.

Dollar/yen fell nearly 1% to 155.55 overnight and traded nearby at 155.78 early in the Asia session.

Oil prices, a key indicator of currency parity, traded around their lowest level in six weeks on Wednesday, as the northern hemisphere gets deeper into summer with limited signs of the expected fuel consumption surge the period usually sees.

Wednesday saw only a slight reprieve, as prices snapped three straight sessions of decline on falling U.S. crude inventories and growing supply risks from wildfires in Canada boosted prices.

Brent crude futures for September rose 66 cents, or 0.8%, to $81.67 a barrel by 0908 GMT. U.S. West Texas Intermediate crude for September increased 65 cents, or 0.8%, to $77.61 per barrel.

Inter-bank market rates for dollar on Wednesday

BID Rs 278.50

OFFER Rs 278.70

Open-market movement

In the open market, the PKR remained unchanged for buying and gained 25.00 paisa for selling against USD, closing at 278.50 and 279.75, respectively.

Against Euro, the PKR gained 28.00 paisa for both buying and selling, closing at 300.63 and 303.63, respectively.

Against UAE Dirham, the PKR lost 15.00 paisa for both buying and selling, closing at 75.65 and 76.40, respectively.

Against Saudi Riyal, the PKR lost 15.00 paisa for both buying and selling, closing at 73.90 and 74.61, respectively.

Open-market rates for dollar on Wednesday

BID Rs 278.50

OFFER Rs 279.75