Rupee largely stable against US dollar

The Pakistani rupee remained largely stable against the US dollar, appreciating 0.01% in the inter-bank market on Monday.

At close, the currency settled at 277.98, a gain of Re0.03 against the greenback.

During the previous week, the rupee remained largely stable against the US dollar in the inter-bank market.

The local unit closed at 278.01 against 278.05 it had closed the week earlier against the greenback, according to the State Bank of Pakistan (SBP).

Globally, the Canadian dollar and Australian dollar were in focus on Monday ahead of their central bank meetings this week, while the euro and other major currencies held steady as traders reviewed the US dollar’s prospects.

With a quarter point rate cut by the Federal Reserve next week a near certainty as per market pricing, analysts say the dollar is looking tired after its long run-up in the four weeks since Donald Trump won the presidential election.

Against the yen, the dollar was down 0.17% at 149.78 yen while the euro stood at $1.0561, down 0.04% so far in Asia and up from Friday’s low of $1.0542.

The dollar index rose 0.03% to 105.98.

Currency markets on edge amid political turmoil, eye US jobs report

The main events investors are watching this week are the European Central Bank (ECB) policy meeting on Thursday and China’s closed-door Central Economic Work Conference.

Oil prices, a key indicator of currency parity, climbed by more than 1% on Monday as top importer China flagged its first move toward a loosened monetary policy since 2010 aiming to bolster economic growth, state media reported citing a Politburo meeting.

Brent crude futures were up 94 cents, or 1.32%, to $72.06 per barrel by 0852 GMT.

US West Texas Intermediate (WTI) crude futures gained $1, or 1.49%, to $68.20.

Inter-bank market rates for dollar on Monday

BID                            Rs 277.98

OFFER                      Rs 278.18

Open-market movement

In the open market, the PKR gained 10 paise for buying and 3 paise for selling against USD, closing at 277.15 and 278.95, respectively.

Against Euro, the PKR gained 47 paise for buying and 49 paise for selling, closing at 291.50 and 293.66, respectively.

Against UAE Dirham, the PKR gained 2 paise for buying and remained unchanged for selling, closing at 75.41 and 76.00, respectively.

Against Saudi Riyal, the PKR lost 1 paisa for buying and remained unchanged for selling, closing at 73.69 and 74.20, respectively.

Open-market rates for dollar on Monday

BID                            Rs 277.15

OFFER                      Rs 278.95