Rupee registers marginal gain against US dollar

Rupee's Performance Against US Dollar Since 15 Jan 2025

The Pakistani rupee recorded marginal increase, appreciating 0.02% against the US dollar in the inter-bank market on Wednesday.

At close, the rupee settled at 279.62, a gain of Re0.05 against the greenback.

On Tuesday, the rupee had closed at 279.67.

Internationally, the US dollar sagged near an 11-week low against its major peers on Wednesday, under pressure from sliding short-term Treasury yields after a run of weak economic data.

The safe-haven yen strengthened towards its highest level since October with investor sentiment fragile amid the threat of new rounds of tariffs from the administration of US President Donald Trump, whereas the Canadian dollar hovered near a two-week trough with additional levies due to hit next week.

The US dollar index, which measures the currency against six major rivals, slipped 0.1% to 106.17 early in the Asian day, bringing it close to Monday’s low of 106.13, the weakest level since December 10.

A day earlier, the US Conference Board said its consumer confidence index dropped 7 points, its largest fall since August 2021, to 98.3, well short of the 102.5 estimate of economists polled by Reuters.

The result added to other weak data, pushing expectations toward two quarter-point interest rate cuts by the Federal Reserve over the remainder of this year, with the next likely coming in July, according to market pricing.

Oil prices, a key indicator of currency parity, held around two-month lows on Wednesday as a potential peace deal between Russia and Ukraine continued to weigh on prices while lower US crude stockpiles provided some support.

Brent crude rose 16 cents, or 0.2%, to $73.18 a barrel by 0926 GMT.

US West Texas Intermediate crude oil futures were up 20 cents, or 0.3%, at $69.13.

Prospects for a peace deal between Russia and Ukraine are improving, ING commodities strategists said in a note on Wednesday, adding that the market was also watching for potential implications of a minerals deal between the US and Ukraine.

Inter-bank market rates for dollar on Wednesday

BID                            Rs 279.62

OFFER                      Rs 279.82

Open-market movement

In the open market, the PKR remained unchanged for buying and lost 2 paise for selling against USD, closing at 279.15 and 281.29, respectively.

Against Euro, the PKR lost 88 paise for both buying and selling, closing at 292.75 and 295.68, respectively.

Against UAE Dirham, the PKR lost 1 paisa for buying and gained 1 paisa for selling, closing at 76.05 and 76.60, respectively.

Against Saudi Riyal, the PKR lost 2 paise for buying and remained unchanged for selling, closing at 74.33 and 74.85, respectively.

Open-market rates for dollar on Wednesday

BID                            Rs 279.15

OFFER                      Rs 281.29