Rupee largely stable against US dollar

The Pakistani rupee remained largely stable against the US dollar, depreciating 0.02% in the inter-bank market on Wednesday.

At close, the currency settled at 277.79, a loss of Re0.05 against the greenback.

On Tuesday, the rupee had settled at 277.74, according to the State Bank of Pakistan (SBP).

Internationally, the US dollar hovered close to a three-month peak on Wednesday in a big week for macroeconomic data that could reveal the path for US monetary policy.

The Australian dollar edged closer to a three-month trough after some stickiness in inflation suggested a Reserve Bank of Australia interest rate cut is unlikely this year.

Mixed US indicators overnight, showing a loosening US jobs market but a confident consumer, provided little clarity on the outlook for Federal Reserve easing, allowing the greenback to drift lower with Treasury yields on Tuesday following a strong seven-year note auction.

Recently though, economic readings have pointed to a resilient economy, particularly for employment, spurring a paring back of bets on the pace of rate reductions.

The US dollar index, which measures the currency against six major rivals including the yen and euro, was little changed at 104.24, after reaching the highest since July 30 at 104.63 on Tuesday before finishing the day almost flat.

Oil prices, a key indicator of currency parity, held steady near one-month lows on Wednesday, after sliding in the previous two sessions, as markets weighed a potential ceasefire between Israel and Hezbollah and rising OPEC+ crude supplies against a possible drop in US fuel stocks and demand concerns.

Brent crude futures gained 38 cents, or 0.5%, to $71.50 a barrel by 0957 GMT.

US West Texas Intermediate crude futures edged up 35 cents, or 0.5%, to $67.56 per barrel.

Inter-bank market rates for dollar on Wednesday

BID                            Rs 277.79

OFFER                      Rs 277.99

Open-market movement

In the open market, the PKR lost 3 paise for buying and 6 paise for
selling against USD, closing at 276.84 and 278.72, respectively.

Against Euro, the PKR lost 1.03 rupee for buying and 1.09 rupee for selling, closing at 298.87 and 301.64, respectively.

Against UAE Dirham, the PKR remained unchanged for buying and lost 1 paisa for selling, closing at 75.22 and 75.92, respectively.

Against Saudi Riyal, the PKR remained unchanged for buying and gained 1 paisa for selling, closing at 73.52 and 74.16, respectively.

Open-market rates for dollar on Wednesday

BID                            Rs 276.84

OFFER                      Rs 278.72