The Pakistani rupee registered minor improvement against the US dollar, appreciating 0.06% in the inter-bank market on Friday.
At close, the currency settled at 278.50, a gain of Re0.17 against the US dollar.
On Thursday, the rupee had settled at 278.67 against the greenback, 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.
On Wednesday, Pakistan Finance Minister Muhammad Aurangzeb said the Executive Board meeting on Pakistan will take place in September as “good progress” was being made with the IMF.
Internationally, the US dollar was calm on Friday as traders braced for comments from Federal Reserve Chair Jerome Powell, while Bank of Japan (BOJ) Governor Kazuo Ueda aimed to soothe lingering market nerves after a surprise rate hike last month.
The dollar index, which measures the greenback versus six major peers, was little changed at 101.43 in early trading after rising 0.34% in the previous session.
The index touched 100.92 on Wednesday, its lowest so far this year.
Fed policymakers on Thursday lined up in support of the US starting interest rate cuts next month now that inflation is down from its highs and the US labour market is cooling, though one signalled he is in no rush to ease policy.
Markets are now pricing in 73.5% chance of the Fed cutting rates by 25 basis points (bps) at its September meeting, the CME FedWatch tool showed. Traders are also anticipating 99 bps of easing this year.
Oil prices, a key indicator of currency parity, firmed on Friday but were on track to end the week lower, as weaker US employment data raised concerns over the health of the world’s largest oil consumer, and renewed ceasefire talks in Gaza eased worries about supply.
Brent crude futures rose 67 cents, or 0.9%, to $77.89 a barrel at 0932 GMT, while US West Texas Intermediate (WTI) crude futures inched up 69 cents, or 1%, to $73.70.
Brent futures have fallen about 2% so far this week, while WTI lost nearly 4%.
Inter-bank market rates for dollar on Friday
BID Rs 278.50
OFFER Rs 278.70
Open-market movement
In the open market, the PKR lost 7 paise for buying and remained unchanged for selling against USD, closing at 279.15 and 280.00, respectively.
Against Euro, the PKR gained 26 paise for buying and 45 paise for selling, closing at 309.17 and 310.74, respectively.
Against UAE Dirham, the PKR lost 2 paise for buying and remained unchanged for selling, closing at 75.79 and 76.22, respectively.
Against Saudi Riyal, the PKR lost 2 paise for buying and remained unchanged for selling, closing at 74.02 and 74.42, respectively.
Open-market rates for dollar on Friday
BID Rs 279.15
OFFER Rs 280.00
American Dollar Exchange Rate