Rupee registers marginal decline against US dollar

Rupee's Performance Against US Dollar Since 04 March 2025

The Pakistani rupee posted a marginal decline against the US dollar, depreciating 0.04% in the inter-bank market on Wednesday.

At close, the local currency settled at 281.47, a loss of Re0.10 against the greenback.

On Tuesday, the rupee closed the day at 281.37.

Internationally, the US dollar steadied on Wednesday before a Federal Reserve meeting to determine policy for an uncertain economy and as major investors in Asia continued cashing out of U.S. assets.

News that the United States and China are due to talk on Saturday eased concerns about a trade war that has shaken investor confidence in the dollar and US markets. Fed Chair Jerome Powell was expected to say more data is needed before deciding the US central bank’s next move.

There appeared to be some letup in the selling of dollars since last week, which has been driven by investors globally, particularly in lower-yielding emerging markets, swapping out of the currency or bringing money home.

A record rally in the Taiwan dollar spread outward, driving surges in currencies in Singapore, South Korea, and elsewhere in Asia this week.

Taiwan’s currency has surged more than 10% against the US dollar since US President Donald Trump’s April 2 announcement of sweeping tariffs on trade partners. It was 0.65% weaker on Wednesday.

The dollar index was little changed after slipping 0.2% on Tuesday, its third-straight decline. The euro edged 0.2% lower to $1.1340, giving up some gains following Friedrich Merz’s election as chancellor of Germany.

The Fed is widely expected to leave benchmark interest rates unchanged on Wednesday. Traders are betting the Fed will resume its easing cycle in July, but some economists reckon high inflation will prevent any rate cuts at all this year.

Oil prices, a key indicator of currency parity, rose on Wednesday, holding slightly above recent four-year lows, as investors focused on US-China trade talks and signs of lower US production.

Brent crude futures climbed 73 cents a barrel, or 1.2%, to $62.88 a barrel by 0650 GMT, while US West Texas Intermediate crude was up 81 cents, or 1.4%, at $59.90 a barrel.

Both benchmarks plunged to a four-year low recently after OPEC+’ decided to speed up output increases, stoking fears of oversupply at a time when US tariffs have increased concerns about demand.

Inter-bank market rates for dollar on Wednesday

BID                            Rs 281.47

OFFER                      Rs 281.67

Open-market movement

In the open market, the PKR gained 33 paise for buying and lost 1 paisa for selling against USD, closing at 281.41 and 283.13, respectively.

Against Euro, the PKR gained 2 paise for buying and lost 60 paise for selling, closing at 318.54 and 322.22, respectively.

Against UAE Dirham, the PKR gained 13 paise for buying and lost 10 paise for selling, closing at 76.45 and 77.29, respectively.

Against Saudi Riyal, the PKR gained 43 paise for buying and 22 paise for selling, closing at 75.73 and 75.51, respectively.

Open-market rates for dollar on Wednesday

BID                            Rs 281.41

OFFER                      Rs 283.13