The Pakistani rupee saw a slight improvement against the US dollar, appreciating by 0.02% in the inter-bank market on Thursday.
By the close of the day, the currency stood at 277.79, marking a gain of Re0.05 against the US dollar. On the previous day, the rupee had settled at 277.84, as per data from the State Bank of Pakistan (SBP).
Globally, the US dollar remained close to an 11-week high on Thursday, driven by uncertainty surrounding the upcoming US election and the robust performance of the US economy. This has led to expectations that the Federal Reserve will be less aggressive in cutting rates compared to other central banks.
The dollar’s strength has been supported by positive US economic data, causing traders to reduce their expectations of Fed rate cuts, alongside speculation of a possible win for Republican presidential candidate Donald Trump in next month’s election.
In the broader market, the dollar continued its upward trend, having reached an 11-week peak against a basket of other currencies in the previous session. The dollar index remained steady at 103.51, after peaking at 103.60.
Oil prices, a key factor influencing currency parity, remained largely stable on Thursday as investors awaited developments in the Middle East, official US oil inventory data, and details on China’s stimulus plans.
Brent crude futures rose by 25 cents to $74.47 per barrel at 0834 GMT, while US West Texas Intermediate crude futures increased by the same amount to $70.64 per barrel. Both benchmarks had closed lower on Wednesday, hitting their lowest levels since October 2, following demand cuts by OPEC and the International Energy Agency for 2024 and 2025.
Inter-bank market rates for the US dollar on Thursday:
- Bid: Rs 277.79
- Offer: Rs 277.99
Open-market movement:
In the open market, the PKR gained 8 paisa for buying and 17 paisa for selling against the USD, closing at 277.76 and 279.11, respectively.
Against the Euro, the PKR appreciated by Rs 1.02 for buying and Rs 1.12 for selling, ending at 299.75 and 302.43, respectively.
For the UAE Dirham, the PKR remained unchanged, closing at 75.27 for buying and 75.97 for selling.
Against the Saudi Riyal, the PKR gained 1 paisa for buying but lost 2 paisa for selling, closing at 73.46 and 74.12, respectively.
Open-market rates for the US dollar on Thursday:
- Bid: Rs 277.76
- Offer: Rs 279.11
