Pakistan rupee remained unchanged against the US dollar in the inter-bank market on Thursday.
At close, the rupee settled at 279.26 against the greenback, unchanged from the previous close.
Internationally, the US dollar held near a one-week high against the Japanese yen on Thursday after a hotter-than-expected consumer prices reading, while the euro was shored up by news that Washington aims to begin talks with Russia to end the war in Ukraine.
US President Donald Trump also said he would soon impose reciprocal tariffs on every country that charges duties on US imports, keeping alive fears of a widening global trade war that threatens to accelerate US inflation.
Against the yen, the US dollar was down 0.06% at 154.33, not far off Wednesday’s high of 154.80 hit as US Treasury yields climbed following inflation reading.
Market players are increasing bets the Federal Reserve will hold interest rates higher for longer, pricing in roughly 28 basis points worth of rate cuts for this year, versus around 37 basis points before the data.
The US dollar index, which measures the greenback against the yen, euro, and other peers, was 0.03% lower at 107.88, after touching a one-week high of 108.52 in the previous session.
Oil prices, a key indicator of currency parity, fell 1% on Thursday as a potential peace deal between Russia and Ukraine continued to exert downward pressure, along with rising crude inventories in the United States.
Brent futures were down 86 cents, or 1.1%, at $74.32 a barrel by 1138 GMT while U.S. West Texas Intermediate (WTI) crude dropped 91 cents, or 1.3%, to $70.46.
Brent and WTI lost more than 2% on Wednesday after U.S. President Donald Trump said Russian that President Vladimir Putin and Ukrainian President Volodymyr Zelenskiy expressed a desire for peace in separate phone calls with him and Trump ordered U.S. officials to begin talks on ending the war in Ukraine.
Inter-bank market rates for dollar on Thursday
BID Rs 279.26
OFFER Rs 279.46
Open-market movement
In the open market, the PKR gained 2 paise for buying but lost 4 paise for selling against USD, closing at 278.78 and 281.10, respectively.
Against Euro, the PKR lost 2.34 rupee for buying and 2.64 rupee for selling, closing at 290.24 and 293.24, respectively.
Against UAE Dirham, the PKR remained unchanged for buying and lost 1 paisa for selling, closing at 75.98 and 76.55, respectively.
Against Saudi Riyal, the PKR lost 2 paise for buying and 3 paise for selling, closing at 74.25 and 74.80, respectively.
Open-market rates for dollar on Thursday
BID Rs 278.78
OFFER Rs 281.10
American Dollar Exchange Rate