Rupee registers minor decline against US dollar

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

At close, the currency settled at 278.67, a loss of Re0.15 against the US dollar.

On Wednesday, the rupee had settled at 278.52 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 keep an eye on some positive indicators and approval from the International Monetary Fund’s (IMF) Executive Board over a new $7-billion Extended Fund Facility.

On Wednesday, Pakistan Finance Minister Muhammad Aurangzeb said the Executive Board meeting on Pakistan will take place in September as “good progress” was being made with the IMF.

Internationally, the US dollar traded near the lowest in more than a year against the euro and sterling on Thursday as a dovish Federal Reserve and fresh signs of weakness in the US job market backed the case for interest rate cuts.

The US dollar sagged below the closely watched 145 yen mark as US Treasury yields slid, ahead of weekly jobless claims data later in the day and a hotly anticipated speech by Fed Chair Jerome Powell at the central bank’s annual Jackson Hole symposium on Friday.

The dollar index, which measures the currency against the euro, sterling, yen and three other major peers, was little changed at 101.14 as of 0015 GMT.

It dipped to 100.92 overnight for the first time this year.

Oil prices, a key indicator of currency parity, edged lower for a fifth session on Thursday as investors worried about the global demand outlook, however a decline in US fuel inventories limited declines.

Brent crude futures slipped 2 cents to $76.03 a barrel, while US West Texas Intermediate crude futures fell 13 cents to trade at $71.80 at 0840 GMT.

Inter-bank market rates for dollar on Thursday

BID                            Rs 278.67

OFFER                      Rs 278.87

Open-market movement

In the open market, the PKR lost 3 paise for buying and remained unchanged for selling against USD, closing at 279.08 and 280.00, respectively.

Against Euro, the PKR lost 1.22 rupee for buying and 69 paise for selling, closing at 309.43 and 311.19, respectively.

Against UAE Dirham, the PKR lost 5 paise for buying and remained unchanged for selling, closing at 75.77 and 76.22, respectively.

Against Saudi Riyal, the PKR lost 3 paise for buying and remained unchanged for selling, closing at 74.00 and 74.42, respectively.

Open-market rates for dollar on Thursday

BID                            Rs 279.08

OFFER                      Rs 280.00