Rupee largely stable against US dollar

The Pakistani rupee remained largely stable against the US dollar, depreciating 0.02% in the inter-bank market on Thursday.

At close, the currency settled at 277.85, a loss of Re0.06 against the greenback.

On Wednesday, the rupee had settled at 277.79, according to the State Bank of Pakistan (SBP).

Internationally, the US dollar paused ahead of jobs data later this week and the US presidential election next week.

US nonfarm payrolls close out the week on Friday in the run-up to the presidential election on Tuesday. Some investors have been putting on trades betting Republican candidate Donald Trump will win, although he is still neck and neck with Vice President Kamala Harris in several polls.

The dollar index, which measures the currency against six major rivals, rose 0.08% to 104.17, after softening the previous day. It hit its highest since July 30 at 104.63 on Tuesday.

US private payroll growth surged in October, data showed on Wednesday, overcoming fears of temporary disruption from hurricanes and strikes.

Meanwhile, separate data showed the US economy grew at an annualised rate of 2.8% in the third quarter, slightly lower than the 3% expected by economists.

Oil prices, a key indicator of currency parity, edged up on Thursday, extending the previous day’s rally, driven by optimism over US fuel demand following an unexpected drop in crude and gasoline inventories, while reports that OPEC+ may delay a planned output increase offered support.

Brent crude futures gained 11 cents, or 0.15%, to $72.66 a barrel by 0805 GMT.

US West Texas Intermediate crude futures climbed 13 cents, or 0.19%, to $68.74 per barrel.

Both contracts rose more than 2% on Wednesday, after falling more than 6% earlier in the week on the reduced risk of a wider Middle East conflict.

Inter-bank market rates for dollar on Thursday

BID                           Rs 277.85

OFFER                      Rs 278.05

Open-market movement

In the open market, the PKR lost 3 paise for buying and 6 paise for selling against USD, closing at 276.87 and 278.78, respectively.

Against Euro, the PKR lost 31 paise for buying and 30 paise for selling, closing at 299.18 and 301.94, respectively.

Against UAE Dirham, the PKR lost 5 paise for both buying and selling, closing at 75.27 and 75.97, respectively.

Against Saudi Riyal, the PKR remained unchanged for buying and gained 1 paisa for selling, closing at 73.52 and 74.15, respectively.

Open-market rates for dollar on Thursday

BID                           Rs 276.87

OFFER                      Rs 278.78