Rupee records marginal improvement against US dollar

The Pakistani rupee recorded a minor increase against the US dollar, appreciating 0.04% in the inter-bank market on Tuesday.

At close, the currency settled at 277.87, a gain of Re0.10 against the greenback.

On Monday, the rupee had settled at 277.97, according to the State Bank of Pakistan (SBP).

Internationally, the US dollar was buoyant on Tuesday as political turmoil in France undermined the euro, while tariff risks and weakness in China’s economy pushed the yuan to a one-year low.

Markets are waiting for US employment data on Friday to finesse bets on whether the Federal Reserve will cut rates later in the month – currently priced as an even chance.

Job opening figures are due later on Tuesday.

Typically, the US dollar suffers seasonal weakness in December as companies tend to buy foreign currencies, however, this year traders have a wary eye on the incoming administration of President-elect Donald Trump and are keeping the US dollar firm.

Oil prices, a key indicator of currency parity, climbed nearly 1% on Tuesday, as traders awaited the outcome of an OPEC+ meeting later this week.

Brent crude futures rose 66 cents, or 0.92%, to $72.49 a barrel by 0909 GMT, while US West Texas Intermediate crude climbed 63 cents, or 0.93%, to $68.73.

OPEC+ is likely to extend its latest round of output cuts until the end of the first quarter at its Dec. 5 meeting, according to sources.

Inter-bank market rates for dollar on Tuesday

BID                            Rs 277.87

OFFER                      Rs 278.07

Open-market movement

In the open market, the PKR gained 7 paise for buying and 11 paise for selling against USD, closing at 277.17 and 278.87, respectively.

Against Euro, the PKR gained 17 paise for buying and 25 paise for selling, closing at 290.26 and 292.44, respectively.

Against UAE Dirham, the PKR lost 3 paise for buying and remained unchanged for selling, closing at 75.38 and 76.00, respectively.

Against Saudi Riyal, the PKR lost 5 paise for buying and gained 1 paisa for selling, closing at 73.66 and 74.19, respectively.

Open-market rates for dollar on Tuesday

BID                            Rs 277.17

OFFER                      Rs 278.87