In the inter-bank market on Thursday, the Pakistani rupee experienced a minor decline, depreciating by 0.04% against the US dollar. At the end of the trading day, the currency settled at 278.61, reflecting a loss of Re0.10 against the greenback from its previous position at 278.51 on Wednesday.
Over recent weeks, the domestic currency has hovered around 277-279 against the dollar. This stability coincides with Pakistan’s efforts to secure a more extensive International Monetary Fund (IMF) bailout programme.
While the US dollar showed slight weakness on Thursday, trading patterns were relatively subdued in anticipation of a US inflation report due later in the day. Meanwhile, the British pound strengthened as expectations for an August rate cut from the Bank of England (BoE) receded.
In the broader market, the dollar experienced some downward pressure, but currency movements remained mostly stable as investors were cautious about taking new positions before the release of the US inflation report.
The euro gained 0.04% against the greenback, reaching $1.0834, while the Australian dollar also rose by 0.01% to $0.6754. The dollar remained relatively steady at 104.95 against a basket of currencies.
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Market expectations pointed towards a 0.2% monthly increase in core US inflation for June, bringing the annual figure to 3.4%.
Meanwhile, oil prices, seen as a crucial factor influencing currency values, remained steady on Thursday. The Brent benchmark held above $85 a barrel as investors balanced concerns about weaker demand growth from the International Energy Agency (IEA) with indications of increasing US consumption.
Brent futures saw an increase of 21 cents, or 0.25%, reaching $85.29 a barrel by 0938 GMT. US West Texas Intermediate (WTI) crude also rose by 13 cents, or 0.16%, reaching $82.23.
In the inter-bank market, the rates for the US dollar on Thursday were listed as follows:
- BID: Rs 278.61
- OFFER: Rs 278.81
In the open market, the Pakistani rupee experienced minor fluctuations against various other currencies when compared to the previous day’s closing rates:
- PKR against USD: Bought at 279.00 and sold at 280.50
- PKR against Euro: Bought at 300.07 and sold at 302.96
- PKR against UAE Dirham: Bought at 75.61 and sold at 76.34
- PKR against Saudi Riyal: Bought at 73.86 and sold at 74.56
