Markets

Rupee registers marginal decline against US dollar

  • Currency settles at 277.79 against the greenback in inter-bank market
Published November 4, 2024

The Pakistani rupee registered a marginal decline against the US dollar, depreciating 0.03% in the inter-bank market on Monday.

At close, the currency settled at 277.79, a loss of Re0.09 against the greenback.

During the previous week, the rupee marginally weakened as it declined Re0.06 or 0.02% against the US dollar.

The local unit closed at 277.70, against 277.64 it had closed the week earlier against the greenback, according to the State Bank of Pakistan (SBP).

Globally, the US dollar slid in Asia on Monday as investors braced for a potential pivot this week for the global economy as the United States chooses a new leader, and as it likely cuts interest rates again with major implications for bond yields.

The dollar fell 0.9% on the yen to 151.60 and threatened support at 151.45. The dollar index eased 0.3% to 103.63.

Treasury futures rallied a solid 12 ticks, recovering some of the losses suffered on Friday.

Democratic candidate Kamala Harris and Republican Donald Trump remain virtually tied in opinion polls and the winner might not be known for days after voting ends.

Analysts believe Trump’s policies on immigration, tax cuts and tariffs would put upward pressure on inflation, bond yields and the dollar, while Harris was seen as the continuity candidate.

Dealers said the early dip in the dollar might be linked to a well-respected poll that showed Harris taking a surprise 3-point lead in Iowa, thanks largely to her popularity with female voters.

Oil prices, a key indicator of currency parity, rose more than 2% on Monday on a decision by OPEC+ to delay by a month plans to increase output, while the market braced for a crucial week that includes the U.S. presidential election and a key meeting in China.

Brent futures were up $1.81 per barrel, or 2.5%, to $74.91 a barrel at 0912 GMT. U.S. West Texas Intermediate (WTI) crude was up $1.86 a barrel, or 2.7%, to $71.35.

On Sunday, OPEC+, which includes the Organization of the Petroleum Exporting Countries plus Russia and other allies, said it would extend its output cut of 2.2 million barrels per day (bpd) for another month in December, with an increase already delayed from October because of falling prices and weak demand.

Inter-bank market rates for dollar on Monday

BID                            Rs 277.79

OFFER                      Rs 277.99

Open-market movement

In the open market, the PKR lost 2 paise for buying and 8 paise for selling against USD, closing at 276.82 and 278.71, respectively.

Against Euro, the PKR lost 71 paise for buying and 70 paise for selling, closing at 300.45 and 303.22, respectively.

Against UAE Dirham, the PKR remained unchanged for buying and lost 1 paisa for selling, closing at 75.26 and 75.97, respectively.

Against Saudi Riyal, the PKR remained unchanged for buying and gained 2 paisa for selling, closing at 73.52 and 74.14, respectively.

Open-market rates for dollar on Monday

BID                            Rs 276.82

OFFER                      Rs 278.71

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