Rupee records marginal improvement against US dollar
13 November 2024
Published in: Business Recorder
The Pakistani rupee registered a marginal improvement against the US dollar, appreciating 0.03% in the inter-bank market on Wednesday.
At close, the currency settled at 277.85, a gain of Re0.08 against the greenback.
On Tuesday, the rupee had settled at 277.93, according to the State Bank of Pakistan (SBP).
Internationally, the US dollar held near a 6-1/2-month peak against major peers and bitcoin was solidly poised just below record highs on Wednesday as markets sized up so-called Trump trades ahead of key US inflation data later in the day.
The US dollar is reaping the benefits of Republican Donald Trump’s victory in the US presidential election last week, with investors pricing in policies of lower taxes and trade tariffs under the incoming administration that are seen as inflationary.
The Trump trade has pushed up US Treasury yields as markets wager the Federal Reserve may temper the extent of its future rate cuts.
The US dollar index, which measures the currency against a basket of currencies, tacked on 0.02% to 106.01, not far from Tuesday’s high of 106.17, its strongest since May 1.
Bitcoin paused its record-breaking climb, down 0.23% at $87,105.05 after hitting an all-time high of $89,998 on Tuesday. Trump has vowed to make the US “the crypto capital of the planet”.
Oil prices, a key indicator of currency parity, inched higher on Wednesday underpinned by signs of near-term supply tightness but held near their lowest in two weeks, a day after OPEC downgraded its forecast for global oil demand growth in 2024 and 2025.
Brent futures rose 14 cents, or 0.2%, to $72.03 a barrel by 0745 GMT, while US West Texas Intermediate (WTI) crude futures gained 13 cents, or 0.2%, at $68.25.
Oil prices settled up 0.1% on Tuesday following the news, after falling by about 5% during the two previous sessions. OPEC also cut its 2025 global demand growth estimate to 1.54 million bpd from 1.64 million bpd.
Inter-bank market rates for dollar on Wednesday
BID Rs 277.85
OFFER Rs 278.05
Open-market movement
In the open market, the PKR lost 8 paise for buying and gained 3 paise for selling against USD, closing at 277.02 and 278.80, respectively.
Against Euro, the PKR gained 82 paise for both buying and selling, closing at 292.68 and 295.44, respectively.
Against UAE Dirham, the PKR gained 2 paise for buying and 1 paisa for selling, closing at 75.25 and 75.96, respectively.
Against Saudi Riyal, the PKR gained 2 paise for buying and remained unchanged for selling, closing at 73.50 and 74.16, respectively.
