Rupee records marginal gain against dollar

The Pakistani rupee recorded marginal improvement against the US dollar in the inter-bank market on Thursday.

At close, the currency settled at 280.65, a gain of Re0.01 against the greenback.

On Wednesday, the local unit closed at 280.66.

Internationally, the US dollar was riding high on Thursday after notching its sharpest gain in six weeks as Fed minutes made a December US rate cut seem less likely, while the yen tumbled on bets that Japan would not immediately step in to stem its weakness.

The yen fell 1% to a 10-month low of 157.18 per dollar overnight in a slide that began after Finance Minister Satsuki Katayama said there was no specific discussion on foreign exchange at a meeting with Bank of Japan Governor Kazuo Ueda.

The yen hovered around 157 to the dollar in morning trade, near where it began the year, and traders now figure Japanese authorities may step in somewhere around the 160 mark, or if there are any more sudden moves.

The euro notched about a 0.4% fall overnight and was steady in early trade on Thursday at $1.1528. Sterling fell about 0.7% to a two-week low of $1.3043.

In the US, expectations for a December cut have fallen below 25%, after being priced as a near-certainty a month ago.

The dollar index rose 0.5% overnight, climbing through its 200-day moving average, and was last up 0.1% at 100.17.

Oil prices, a key indicator of currency parity, edged up on Thursday after falling in the previous session, boosted by a bigger-than-expected draw in US crude stockpiles and a general risk-asset market rally.

Brent crude futures were up 57 cents, or 0.9%, at $64.08 a barrel at 1101 GMT, while US West Texas Intermediate crude futures were 51 cents, or 0.9%, higher at $59.95.

Inter-bank market rates for dollar on Thursday

BID                            Rs 280.65

OFFER                      Rs 280.85

Open-market movement

In the open market, the PKR gained 2 paise for buying and remained unchanged for selling against USD, closing at 281.30 and 281.70, respectively.

Against Euro, the PKR gained 1.36 rupee for buying and 1.45 rupee for selling, closing at 323.64 and 326.63, respectively.

Against UAE Dirham, the PKR gained 3 paise for buying and 2 paise for selling, closing at 76.61 and 77.38, respectively.

Against Saudi Riyal, the PKR remained unchanged for buying and lost 1 paisa for selling, closing at 74.90 and 75.52, respectively.

Open-market rates for dollar on Thursday

BID                            Rs 281.30

OFFER                      Rs 281.70