Rupee marginally appreciates against US dollar

The Pakistani rupee registered slight improvement, appreciating 0.03% against the US dollar in the inter-bank market on Thursday.

At close, the currency settled at 278.41, a gain of Re0.09, against the greenback.

On Wednesday, the currency had settled at 278.50 against the US dollar.

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

Globally, the yen rose to its strongest level against the US dollar in 2-1/2 months on Thursday and scaled multi-month highs against other currencies ahead of next week’s Bank of Japan (BOJ) meeting.

Against the dollar, the yen surged more than 1% to peak at 152.23, a level not seen since early May.

US business activity climbed to a 27-month high in July, but firms appeared to have some difficulty sustaining higher prices for their goods and services amid resistance from consumers.

Traders also have their eye on second-quarter U.S. growth figures later on Thursday, though the outcome is unlikely to significantly alter bets for Federal Reserve rate cuts this year, with a September move already fully priced in.

Against a basket of currencies, the dollar fell more than 0.1% to 104.21, though that was largely on the back of the yen’s sharp rise.

Oil prices, a key indicator of currency parity, fell on Thursday on mixed demand signals a day after large draws on U.S. inventories while consumption in China, the world’s largest crude importer, remains lacklustre.

Brent crude futures for September fell 74 cents, or 0.9%, to $80.97 a barrel by 0855 GMT. U.S. West Texas Intermediate crude for September slid 74 cents, or 1%, to $76.85.

Inter-bank market rates for dollar on Thursday

BID   Rs 278.41

OFFER  Rs 278.61

Open-market movement

In the open market, the PKR remained unchanged for buying and gained 5.00 paisa for selling against USD, closing at 278.50 and 279.70, respectively.

Against Euro, the PKR gained 24.00 paisa for both buying and selling, closing at 300.39 and 303.39, respectively.

Against UAE Dirham, the PKR remained unchanged for both buying and selling, closing at 75.65 and 76.40, respectively.

Against Saudi Riyal, the PKR remained unchanged for both buying and selling, closing at 73.90 and 74.61, respectively.

Open-market rates for dollar on Thursday

BID Rs 278.50

OFFER Rs 279.70