Rupee sees marginal decline against US dollar

The Pakistani rupee registered a marginal decline against the US dollar, depreciating 0.05% in the inter-bank market on Monday.

At close, the currency settled at 278.63, a loss of Re0.13, against the greenback.

During the previous week, the rupee decreased marginally as it lost Re0.16 or 0.06% against the US dollar.

The local unit closed at 278.50, against 278.34 it had closed the week earlier against the greenback, according to the State Bank of Pakistan (SBP).

In recent months, the domestic currency has largely been around 277-279 against the dollar as traders have an eye on some strong positive indicators.

Internationally, Japan’s yen hit its highest levels against the US dollar since January on Monday, as markets extended moves triggered last week after weak US labour data stoked recession worries and expectations of deeper rate cuts by the Federal Reserve.

Friday’s jobs data, coming on top of a string of weak earnings reports from large technology firms and heightened concerns over the Chinese economy, drove a global sell-off in stock markets, oil and high-yielding currencies as investors sought the safety of cash.

The selling continued on Monday, with US Treasury yields falling further, stock indexes in the red, bitcoin dumped and the dollar losing ground mainly to the yen.

Oil prices, a key indicator of currency parity, extended losses in a volatile session on Monday as fears of a recession in top oil consumer the United States offset supply worries stemming from mounting tensions in the Middle East, the world’s largest oil producing region.

Share markets also tumbled across Asia as U.S. recession fears sent investors rushing from risk assets while wagering that rapid rate cuts will be needed to drive economic growth.

Brent crude futures dropped 53 cents, or 0.7%, to $76.28 a barrel by 0819 GMT. U.S. West Texas Intermediate crude futures were down 57 cents, or 0.6%, at $72.95.

Brent and WTI tumbled more than 3% on Friday, with both contracts marking their fourth straight week of losses – the biggest losing streaks since November.

Inter-bank market rates for dollar on Monday

BID                            Rs 278.63

OFFER                      Rs 278.83

Open-market movement

In the open market, the PKR lost 6 paise for buying and 1 paise for selling against USD, closing at 279.29 and 280.40, respectively.

Against Euro, the PKR lost 95 paise for buying and 68 paise for selling, closing at 303.88 and 305.65, respectively.

Against UAE Dirham, the PKR gained 2 paise for both buying and selling, closing at 75.85 and 76.35, respectively.

Against Saudi Riyal, the PKR gained 5 paise for buying and 2 paise for selling, closing at 74.07 and 74.53, respectively.

Open-market rates for dollar on Monday

BID                            Rs 279.29

OFFER                      Rs 280.40