The Pakistani rupee registered marginal improvement against the US dollar, appreciating 0.04% in the inter-bank market on Thursday.
At close, the currency settled at 278.44, a gain of Re0.10 against the US dollar.
On Wednesday, the rupee had settled at 278.54, according to the State Bank of Pakistan (SBP).
In recent months, the domestic currency has largely been around 277-279 against the dollar as traders keep an eye on some positive indicators and approval from the International Monetary Fund’s (IMF) Executive Board over a new $7-billion Extended Fund Facility (EFF).
Globally, the US dollar traded near a four-week high versus the euro on Thursday after signs of some stickiness in US inflation reinforced expectations that the Federal Reserve would avoid a super-sized interest rate cut next week.
Meanwhile, a quarter-point rate reduction from the European Central Bank (ECB) is widely expected later on Thursday, with investors anxious for hints on how soon the monetary authority will cut again.
The US dollar gained against the yen, following a turbulent session on Wednesday that saw the US currency plunge as much as 1.24% to the lowest this year before recovering all its losses after the consumer price data.
The US consumer price index (CPI) rose 0.2% last month, matching the advance in July.
But excluding the volatile food and energy components, the gauge climbed 0.3%, accelerating from the previous month’s 0.2% increase.
Oil prices, a key indicator of currency parity, rose more than 1% on Thursday, extending a rebound spurred by concern over Hurricane Francine’s impact on US output, though a gloomy demand outlook capped gains.
Brent crude futures for November rose $1.01, or 1.4%, to $71.62 a barrel by 0805 GMT. US crude futures for October were up $1, or 1.5%, at $68.31.
Both contracts rose by more than 2% in the previous session as offshore platforms in the US Gulf of Mexico were shut and refinery operations on the coast were disrupted by Hurricane Francine’s landfall in southern Louisiana on Wednesday.
Inter-bank market rates for dollar on Thursday
BID Rs 278.44
OFFER Rs 278.64
Open-market movement
In the open market, the PKR gained 5 paise for buying and remained unchanged for selling against USD, closing at 279.41 and 280.85, respectively.
Against Euro, the PKR lost 8 paise for buying and 14 paise for selling, closing at 306.40 and 309.44, respectively.
Against UAE Dirham, the PKR remained unchanged for both buying and selling, closing at 75.70 and 76.44, respectively.
Against Saudi Riyal, the PKR remained unchanged for buying and lost 1 paisa for selling, closing at 74.00 and 74.72, respectively.
Open-market rates for dollar on Thursday
BID Rs 279.41
OFFER Rs 280.85
American Dollar Exchange Rate