Rupee registers marginal gain against US dollar

The Pakistani rupee registered a marginal gain against the US dollar, appreciating 0.02% in the inter-bank market on Tuesday.

At close, the currency settled at 279.17 for a gain of Re0.05 against the greenback, according to the State Bank of Pakistan (SBP).

The rupee had closed at 279.22 on Monday.

Internationally, the US dollar firmed on Tuesday after US President Donald Trump moved to raise tariffs on steel and aluminium imports substantially and said he would announce plans to impose reciprocal tariffs on other countries over the coming days.

Currencies held tight ranges in Asian trade in moves that were more modest than those of Monday’s, as Trump formalised what he had pledged over the weekend. Trading was thin due to a holiday in Japan.

A White House official confirmed the 25% tariffs on steel and aluminium imports will take effect on March 4.

The US dollar rose 0.13% against the Canadian dollar to C$1.4332, extending gains made from the previous session, though the loonie was still some distance away from a 22-year low hit earlier this month.

Traders were also awaiting a testimony from Federal Reserve Chair Jerome Powell later in the day and a reading on US inflation due on Wednesday for clues on the rate outlook in the world’s largest economy before taking on fresh positions.

Recent comments from Fed officials have underscored their no-rush approach to further rate cuts, particularly as they wait for further clarity over how Trump’s policies will affect economic growth and inflation.

Futures point to less than 40 basis points worth of rate cuts priced in by the year-end.

Against a basket of currencies, the greenback was little changed at 108.35, holding to its slight gain from the previous session.

Oil prices, a key indicator of currency parity, extended gains on Tuesday amid concerns over Russian and Iranian oil supply and sanctions threats, despite worries that escalating trade tariffs could dampen global economic growth.

Brent crude futures were up 55 cents, or 0.72%, at $76.42 a barrel by 0717 GMT, while US West Texas Intermediate crude rose 50 cents or 0.69% to $72.82.

Both contracts posted gains of nearly 2% in the prior session after three weekly losses in a row.

Inter-bank market rates for dollar on Tuesday

BID                            Rs 278.17

OFFER                      Rs 278.37

Open-market movement

In the open market, the PKR lost 6 paise for buying and 5 paise for selling against USD, closing at 278.76 and 281.04, respectively.

Against Euro, the PKR gained 10 paise for buying and 22 paise for selling, closing at 286.75 and 289.62, respectively.

Against UAE Dirham, the PKR lost 3 paise for buying and 1 paisa for selling, closing at 75.96 and 76.54, respectively.

Against Saudi Riyal, the PKR remained unchanged for buying and gained 2 paise for selling, closing at 74.19 and 74.76, respectively.

Open-market rates for dollar on Tuesday

BID                            Rs 278.76

OFFER                      Rs 281.04