The Dollar-Rupee Exchange Rate Remains Relatively Stable

(CTN News) – Interbank rates show the Pakistani rupee held steady against the US dollar on Thursday.

State Bank of Pakistan (SBP) reports that the local currency closed at 278.40, an increase of Re0.01 versus the greenback.

A marginal improvement was reported by the SBP on Wednesday, with the rupee ending the day at 278.41 against the US dollar.

A key development on Wednesday was the announcement by Prime Minister Shehbaz Sharif that Pakistan needs another International Monetary Fund (IMF) programme to revive the economy.

During the cabinet meeting, the prime minister said it was important to deal seriously with rising electricity and gas theft, low tax-to-GDP ratio, and rapid increase in expenditures.

As a result of upside inflation surprises, the US Federal Reserve maintained its interest rate cut projections for the year, and did not strike a more hawkish tone as some investors had expected.

Jerome Powell, Chair of the Federal Reserve’s policy meeting, said that recent high inflation rate readings have not changed the underlying “story” of slowly easing price pressures in the US, even though inflation is expected to progress at a slightly slower pace this year.

The CME FedWatch tool now indicates 75% chance of a Fed rate cut in June, up from 59% just a day ago. Traders have rebet on a Fed easing cycle starting in June.

103.23 is where the dollar index ended the previous trading session after a drop of more than 0.5%.

Even though the Fed is expected to keep interest rates high for awhile, oil prices, an important indicator of currency parity, rose on Thursday.

May Brent crude futures were 0.5% higher by 0730 GMT.

US West Texas Intermediate futures for May gained 38 cents, or 0.5%, to $81.65 per barrel after falling 1.8% the previous session.

Rates on the dollar’s interbank market on Thursday

280.40 rupees, BID

Rs 278.60 IS THE OFFER

Movement toward open markets

On the open market, the PKR gained 24.00 paisa when bought and 26.00 paisa when sold against USD, closing at 278.24 and 280.86.

The PKR lost 1.36 rupees against the Euro for buying and 1.39 rupees against selling, closing at 302.14 and 305.06, respectively.

A PKR sales transaction amounting to 75.55 paisa and a buying transaction amounting to 76.28 paisa resulted in a gain of 2.00 paisa against UAE Dirham.

The PKR gained 4.00 paisas for buying and 3.00 paisas for selling Saudi Riyal, ending at 73.80 and 74.50, respectively, against the Saudi Riyal.

Thursday’s dollar open-market rates

278.24 rupees were bid

Rs 280.86 is the offer price

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