Rupee registers marginal decline against US dollar

The Pakistani rupee registered a marginal decline against the US dollar, depreciating 0.02% in the inter-bank market on Tuesday.

At close, the currency settled at 278.69, a loss of Re0.06, against the greenback.

On Monday, the local unit closed at 278.63 against the US dollar, 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.

Globally, the US dollar was nursing steep losses on Tuesday, with the yen on the back foot after a sharp rise in the previous session as traders contend with unwinding of popular carry trades and the prospect of deep rate cuts from the Federal Reserve.

Last week’s softer-than-expected US jobs data, along with disappointing earnings from major tech firms and heightened concerns over the Chinese economy, have sparked a global sell-off in stocks and high-yielding currencies.

On Monday, the global rush out of riskier assets took a staggering turn, with equity markets in meltdown mode as worries that the U.S. is heading for a recession roiled investors.

US central bank policymakers pushed back on Monday against the notion that weaker-than-expected July jobs data means the economy is in recessionary freefall, but also warned that the Federal Reserve will need to cut rates to avoid such an outcome.

The dollar index, which measures the U.S. unit versus six rivals, was flat at 102.87 after touching a seven-month low of 102.15 on Monday.

Oil prices, a key indicator of currency parity, pared gains in volatile trade on Tuesday as fears of an escalation in the Middle East conflict and a drop in production at Libya’s largest Sharara oilfield raised the prospect of tight supplies.

However, buying was capped by a weak demand outlook in China, while a global market recovery from a sell-off on Monday provided support.

Brent crude futures were up 12 cents, or 0.16%, to $76.42 a barrel at 1001 GMT, while U.S. West Texas Intermediate crude futures were up 22 cents, or 0.3%, to $73.16. Both contracts gained over $1 a barrel earlier in the session.

Inter-bank market rates for dollar on Tuesday

BID Rs 278.69

OFFER Rs 278.89

Open-market movement

In the open market, the PKR gained 5.00 paisa for buying and remained unchanged for selling against USD, closing at 279.24 and 280.40, respectively.

Against Euro, the PKR gained 2.00 paisa for buying and lost 34.00 paisa for selling, closing at 303.86 and 305.99, respectively.

Against UAE Dirham, the PKR gained 2.00 paisa for buying and remained unchanged for selling, closing at 75.83 and 76.35, respectively.

Against Saudi Riyal, the PKR gained 3.00 paisa for buying and lost 2.00 paisa for selling, closing at 74.04 and 74.55, respectively.

Open-market rates for dollar on Tuesday

BID Rs 279.24

OFFER Rs 280.40