The Pakistani rupee registered a marginal decline against the US dollar, depreciating 0.02% in the inter-bank market on Tuesday.
At close, the currency settled at 278.70, a loss of Re0.06 against the US dollar.
On Monday, the rupee had settled at 278.64 against the dollar, 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).
Internationally, the US dollar held close to a two-week high against the yen and the euro on Tuesday as investors geared up for a slew of economic data, including Friday’s US payrolls, that will influence the size of an expected interest rate cut from the Federal Reserve.
Investor focus this week will squarely be on the US payrolls data due on Friday after Fed Chair Jerome Powell last month endorsed an imminent start to interest rate cuts in a nod to the worries over the labour market.
Ahead of that job openings data on Wednesday along with jobless claims report on Thursday will be in the spotlight.
Markets are pricing in a 69% chance of a 25 basis points (bps) cut when the Fed meets Sept. 17-18, with 31% probability of a 50 bps cut, CME FedWatch tool showed.
The dollar index, which measures the US currency against six rivals, was at 101.69 in early trading, just below the two-week high of 101.79 it touched on Monday.
The index fell 2.2% in August on expectations of US rate cuts.
Oil prices, a key indicator of currency parity, declined 2% on Tuesday as sluggish economic growth in China, the world’s biggest crude importer, increased demand concerns that overshadowed the impact of halted production and exports from Libya.
Brent crude futures fell by $1.65, or 2.1%, to $75.87 a barrel by 1004 GMT.
West Texas Intermediate crude futures, which did not settle on Monday because of the US Labour Day holiday, were down $1.06, or 1.4%, at $72.49.
Inter-bank market rates for dollar on Tuesday
BID Rs 278.70
OFFER Rs 278.90
Open-market movement
In the open market, the PKR lost 5 paise for buying and 25 paise for selling against USD, closing at 279.02 and 280.00, respectively.
Against Euro, the PKR lost 25 paise for buying and 58 paise for selling, closing at 307.40 and 309.10, respectively.
Against UAE Dirham, the PKR lost 1 paisa for buying and 3 paise for selling, closing at 75.86 and 76.19, respectively.
Against Saudi Riyal, the PKR lost 4 paise for buying and 10 paise for selling, closing at 74.14 and 74.46, respectively.
Open-market rates for dollar on Tuesday
BID Rs 279.02
OFFER Rs 280.00
American Dollar Exchange Rate