Rupee posts marginal gain against US dollar

The Pakistani rupee posted marginal gain against the US dollar, gaining Re0.01 in the inter-bank market on Wednesday.

At close, the currency settled at 281.21, a gain of Re0.01 against the greenback.

On Tuesday, the local unit closed at 281.22.

Globally, the Indian rupee may inch towards a record low at the open on Wednesday, bogged down by the dollar index’s rally to a six-week high and weakness in Asia, prompting bets on another round of central bank intervention.

The 1-month non-deliverable forward indicated the Indian rupee will open in the 88.78-88.82 range versus the US dollar, compared with Tuesday’s close of 88.7725.

The Indian rupee hit an all-time low of 88.80 last Tuesday. In the four sessions since then, the local unit has managed to avoid slipping to a new low, helped by active intervention by the Reserve Bank of India.

The dollar index rose 0.5% on Tuesday and gained another 0.3% in Wednesday’s Asian session, inching towards the 99 mark, its highest level in six weeks.

The slump in the Japanese yen helped lift the index, with the yen trading at its weakest since February amid investors assessing the likely policy stance of Japan’s next prime minister, Sanae Takaichi.

Oil prices, a key indicator of currency parity, edged higher in early trade on Wednesday as markets started to brush off oversupply fear for the time being, having digested a decision by OPEC+ to restrain November production increases.

Brent crude futures was up 40 cents, or 0.6%, to $65.85 a barrel by 0045 GMT.

US West Texas Intermediate crude climbed 44 cents, or 0.7%, to $62.17.

Inter-bank market rates for dollar on Wednesday

BID                            Rs 281.21

OFFER                      Rs 281.40

Open-market movement

In the open market, the PKR gained 10 paise for buying and remained unchanged for selling against USD, closing at 281.71 and 282.25, respectively.

Against Euro, the PKR gained 1.65 rupee for buying and 1.45 rupee for selling, closing at 327.40 and 331.02, respectively.

Against UAE Dirham, the PKR lost 4 paise for buying and 6 paise for selling, closing at 76.81 and 77.53, respectively.

Against Saudi Riyal, the PKR remained unchanged for buying and gained 1 paisa for selling, closing at 75.05 and 75.62, respectively.

Open-market rates for dollar on Wednesday

BID                            Rs 281.71

OFFER                      Rs 282.25