Rupee registers minor gain against US dollar

The Pakistani rupee registered marginal improvement against the US dollar, appreciating 0.04% in the inter-bank market on Friday.

At close, the currency settled at 278.54, a gain of Re0.10 against the US dollar.

On Thursday, the rupee had settled at 278.64 against the dollar, according to the State Bank of Pakistan (SBP).

In recent months, the domestic currency has largely been around 277-279 as traders keep an eye on approval from the International Monetary Fund’s (IMF) Executive Board over a new $7-billion Extended Fund Facility.

Internationally, the US dollar traded near a one-week high versus major peers on Friday, on track to snap a five-week losing run, after robust economic data pared bets for aggressive Federal Reserve interest rate cuts.

Overnight, US data showed gross domestic product (GDP) grew a 3.0% annualised rate in the second quarter, an upward revision from the 2.8% rate reported last month.

Traders now more strongly favour a quarter-point Fed rate reduction on Sept. 18, laying only 34% odds of a 50-basis point (bp) cut, down from 38% a day earlier, according to the CME Group’s FedWatch Tool.

The US dollar index - which measures the currency against a basket of six major peers - was little changed at 101.34 as of 0032 GMT, after rising 0.36% on Thursday and touching the highest since Aug. 22 at 101.58.

The US dollar eased 0.14% to 144.78 yen, after rising as high as 145.55 overnight for the first time since Aug. 23.

Oil prices, a key indicator of currency parity, edged higher on Friday on track for a weekly gain as Libyan output disruptions and Iraqi plans to curb production raised supply concerns, while data showing the US economy grew faster than initial estimates eased recession fears.

Still, signs of weakened demand, particularly in China, limited gains.

Brent crude futures for October delivery, which expire on Friday, were up 46 cents, or 0.58%, at $80.40 a barrel by 0845 GMT.

The more actively traded contract for November rose 42 cents, or 0.53%, to $79.24. US West Texas Intermediate crude futures gained 43 cents, or 0.57%, to $76.34.

Inter-bank market rates for dollar on Friday

BID                            Rs 278.54

OFFER                      Rs 278.74

Open-market movement

In the open market, the PKR gained 20 paise for buying and 25 paise for selling against USD, closing at 278.95 and 279.75, respectively.

Against Euro, the PKR gained 1.16 rupee for buying and 1.63 rupee for selling, closing at 307.76 and 309.04, respectively.

Against UAE Dirham, the PKR gained 1 paise for buying and 6 paise for selling, closing at 75.79 and 76.16, respectively.

Against Saudi Riyal, the PKR remained unchanged for buying and gained 6 paise for selling, closing at 74.05 and 74.36, respectively.

Open-market rates for dollar on Friday

BID                            Rs 278.95

OFFER                      Rs 279.75