Rupee records slight decline against US dollar

The Pakistani rupee registerd a slight decline against the US dollar, depreciating 0.04% in the inter-bank market on Thursday.

At close, the currency settled at 278.35 for a loss of Re0.12 against the greenback.

On Wednesday, the rupee had settled at 278.23, according to the State Bank of Pakistan (SBP).

Internationally, the US dollar flirted with a two-year peak on Thursday after the Federal Reserve signalled a slower pace of rate cuts in 2025, while the yen slid to a one-month low ahead of a policy decision by the Bank of Japan (BOJ) later in the day.

The hawkish tilt from Fed Chair Jerome Powell and his team sent traders heavily dialling back on easing expectations next year and in turn sparked a broad dollar rally, sending currencies like the Swiss franc , the Canadian dollar and the South Korean won tumbling to milestone lows in early Asia trade on Thursday.

The Swissie bottomed at a five-month trough of 0.90215 per dollar, while the Canadian dollar sank to its lowest in over four years at 1.44655 per U.S. dollar.

The won tumbled to its weakest level in 15 years.

In stark contrast, the dollar index steadied at 108.15, near Thursday’s two-year top of 108.27.

Powell said on Wednesday more reductions in borrowing costs now hinge on further progress in lowering stubbornly high inflation, with his explicit - and repeated - references to the need for caution from here on jolting markets globally.

Oil prices, a key indicator of currency parity, wobbled on Thursday after the US Federal Reserve signalled it would slow the pace of interest rate cuts in 2025, which could hurt economic growth, reduce fuel demand and strengthen the dollar.

Brent crude futures were little changed, drifting down by 3 cents to $73.36 a barrel by 0952 GMT.

US West Texas Intermediate crude lost 2 cents to $70.56.

Inter-bank market rates for dollar on Thursday

BID                            Rs 278.35

OFFER                      Rs 278.55

Open-market movement

In the open market, the PKR lost 11 paise for buying and 15 paise for selling against USD, closing at 277.49 and 279.34, respectively.

Against Euro, the PKR gained 2.63 rupees for buying and 2.72 rupees for selling, closing at 287.74 and 289.78, respectively.

Against UAE Dirham, the PKR remained unchanged for buying and lost 4 paisaefor selling, closing at 75.47 and 76.04, respectively.

Against Saudi Riyal, the PKR remained unchanged for buying and lost 5 paise for selling, closing at 73.75 and 74.30, respectively.

Open-market rates for dollar on Thursday

BID                            Rs 277.49

OFFER                      Rs 279.34