Rupee slips lower against US dollar

The Pakistani rupee recorded a marginal decline against the US dollar, depreciating 0.04% in the inter-bank market on Friday.

At close, the rupee settled at 279.57, a loss of Re0.11 against the greenback.

The rupee had closed at 279.46 on Thursday.

Internationally, the Japanese yen shot to a 2-1/2 month high on Friday on the back of a jump in Japanese inflation, while the US dollar was set for a third weekly drop in a row as traders calculated the start of Donald Trump’s second term has been mostly bluster on the tariff front.

The yen broke through chart resistance at 150 per dollar overnight and it strengthened as far as 149.285 per dollar in the Asia morning after Japan recorded core inflation running at its fastest pace for 19 months in January.

The euro was up 0.8% overnight and was steady in Asia at $1.0498 with traders awaiting an election in Germany on the weekend where polls point to a conservative coalition win.

The US dollar nursed broad losses as bulls who had built up big long positions in anticipation of a trade war have backed off while Trump equivocates about tariffs.

Trump has slapped an additional 10% tariff on Chinese goods and announced plans to reimpose steel and aluminium levies from his first term, but suspended threatened tariffs on Canada and Mexico while numerous others remain - as of yet - only threats.

The US dollar index on Thursday touched its lowest for 2025 at 106.29 and was last at 106.45.

Oil prices, a key indicator of currency parity, were steady on Friday and poised for a weekly increase amid an improving outlook for demand in the US and China.

Concerns over supply disruptions in Russia also lent support.

Brent futures dipped 3 cents to $76.45 a barrel by 0414 GMT while US West Texas Intermediate crude edged down 4 cents to $72.44.

Both indexes have gained over 2% this week - the largest weekly advances since early January. Brent would be marking a second week of gains after three weeks of declines.

WTI is set to have its first week of gains after four weeks of declines.

Inter-bank market rates for dollar on Friday

BID                            Rs 279.57

OFFER                      Rs 279.77

Open-market movement

In the open market, the PKR lost 12 paise for buying and 9 paise for selling against USD, closing at 278.91 and 281.17, respectively.

Against Euro, the PKR lost 1.60 rupee for buying and 1.59 rupee for selling, closing at 292.08 and 295.09, respectively.

Against UAE Dirham, the PKR lost 1 paisa for buying and gained 1 paisa for selling, closing at 76.02 and 76.59, respectively.

Against Saudi Riyal, the PKR gained 1 paisa for both buying and selling, closing at 74.28 and 74.84, respectively.

Open-market rates for dollar on Friday

BID                            Rs 278.91

OFFER                      Rs 281.17