Rupee slips lower against US dollar

The Pakistani rupee registered a marginal decline against the US dollar, depreciating 0.03% in the inter-bank market on Thursday.

At close, the local unit settled at 278.39, a loss of Re0.09, against the greenback, as per the State Bank of Pakistan (SBP).

On Wednesday, the rupee had closed at 278.30.

In recent weeks, the domestic currency has largely been around 277-278 against the dollar as Pakistan moves forward with its plan to win a longer and longer International Monetary Fund (IMF) bailout programme.

Internationally, the US dollar eased on renewed bets of a US Federal Reserve easing cycle expected this year.

Markets have priced in nearly 50 basis points of Fed rate cuts this year, with the first expected to come in September.

Data on Wednesday showed the US services sector switched back into growth mode in May after a short-lived contraction the month before, though details of the survey pointed to employment remaining in contraction territory.

Against the US dollar, the kiwi touched a three-month top of $0.6201, while sterling rose 0.09% to $1.2800 and the Aussie edged 0.25% higher to $0.6664.

The dollar index eased 0.14% to 104.10.

Oil prices, a key indicator of currency parity, extended gains on Thursday with support from growing expectations of an interest rate cut from the US Federal Reserve in September, even as the upside was capped by an OPEC+ plan to increase supply and higher US inventories.

Brent crude futures traded up 57 cents or 0.7% at $78.98 a barrel by 0815 GMT. US West Texas Intermediate crude futures were up 62 cents or 0.8% at $74.69.

Oil benchmarks rose more than 1% on Wednesday, recovering after sliding by nearly $8 a barrel over the five sessions through Tuesday.

Inter-bank market rates for dollar on Thursday

BID                            Rs 278.39

OFFER                      Rs 278.59

Open-market movement

In the open market, the PKR lost 5 paise for buying and 8 paise for selling against USD, closing at 277.23 and 279.67, respectively.

Against Euro, the PKR lost 14 paise for buying and 18 paise for selling, closing at 300.01 and 302.99, respectively.

Against UAE Dirham, the PKR lost 1 paisa for buying and remained unchanged for selling, closing at 75.27 and 75.98, respectively.

Against Saudi Riyal, the PKR lost 1 paisa for buying and remained unchanged for selling, closing at 73.52 and 74.22, respectively.

Open-market rates for dollar on Thursday

BID                            Rs 277.23

OFFER                      Rs 279.67