Rupee remains stable against US dollar

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

At close, the currency settled at 277.67, a loss of Re0.03 against the greenback.

On Monday, the rupee had settled at 277.64, according to the State Bank of Pakistan (SBP).

Internationally, the US dollar clung to seven-week highs against major currencies on Tuesday as investors ponder the outlook for US rates after a strong jobs report last week dashed bets for large rate cuts, while escalating tensions in Middle East dented risk sentiment.

Traders have drastically shifted their monetary easing expectations from the Federal Reserve this year.

Markets are no longer fully pricing in a rate cut in November and are ascribing an 86% chance of a 25 basis points (bps) reduction, the CME FedWatch tool showed.

Just 50 bps of easing is priced in by December, down from over 70 bps just a week earlier.

The US dollar index, which measures the US unit against major rivals, last fetched 102.41, just below the seven-week high of 102.69 it touched on Friday.

Oil prices, a key indicator of currency parity, declined on Tuesday with concerns over potential oil supply disruption easing as the market still awaits an Israeli response to the Iranian rocket attacks last week which triggered the crude price rally.

Brent crude futures fell $1.11, or 1.37%, to $79.82 per barrel at around 0805 GMT. US West Texas Intermediate futures fell $1.12, or 1.45%, to $76.82 a barrel.

Inter-bank market rates for dollar on Tuesday

BID                            Rs 277.67

OFFER                      Rs 277.87

Open-market movement

In the open market, the PKR gained 8 paise for buying and 3 paise for selling against USD, closing at 278.22 and 279.66, respectively.

Against Euro, the PKR lost 63 paise for buying and 48 paise for selling, closing at 303.30 and 306.01, respectively.

Against UAE Dirham, the PKR remained unchanged for buying and gained 2 paise for selling, closing at 75.37 and 76.06, respectively.

Against Saudi Riyal, the PKR gained 4 paise for buying and 5 paise for selling, closing at 73.52 and 74.18, respectively.

Open-market rates for dollar on Tuesday

BID                            Rs 278.22

OFFER                      Rs 279.66