Intraday trade: PKR gains 24 paisa against USD

KARACHI: The Pakistani rupee (PKR) inched up against the US dollar (USD) during early trade on Friday, gaining 24 paisa to stand at 284.73 in the interbank market by 10am. That’s a 0.08 per cent improvement from Thursday’s close of 284.97.

While the gain offers some relief, the currency has still lost Rs1.20, or 0.42 per cent, since the current fiscal year began. Since January, it’s down Rs6.42, or 2.25 per cent, reflecting broader pressure on the local currency.

Globally, the US dollar stayed strong, boosted by solid economic data that has led traders to believe the Federal Reserve may not cut interest rates any time soon. Retail sales in June came in better than expected, and jobless claims have dropped to their lowest level in three months.

Inflation is also creeping up. A recent report showed the biggest rise in consumer prices in five months, suggesting that tariffs are starting to bite. In response, the market has scaled back expectations for rate cuts this year, now pricing in about 45 basis points instead of the earlier 50.

The dollar index, which tracks the greenback against six key currencies, held at 98.456 early Friday, on track for a weekly gain of 0.64 per cent. That’s after rising 0.91 per cent the previous week. On Thursday, the index hit 98.951, its highest since June 23.

Even so, it remains down 9.3 per cent for the year, dragged lower by sharp selloffs in March and April. Those were driven by market jitters over President Donald Trump’s unpredictable trade decisions, which shook confidence in US assets.

Elsewhere, Japan’s yen continued to slide ahead of upper house elections on Sunday. Opinion polls suggest the ruling coalition could lose its grip on power, raising concerns about future policy direction and its trade stance with the US. In the digital currency world, Bitcoin hovered just below $120,000 after touching a record high of $123,153.22 earlier in the week. The rally followed US Congress passing a bill that lays the groundwork for dollar-pegged stablecoins.

Back home, Thursday’s session saw the rupee close at 284.97 against the dollar, a slight dip from 284.96 the day before. During the day, it moved between a bid of 286.5 and an ask of 288.5. In the open market, exchange companies quoted the dollar at 287.00 for buying and 288.50 for selling.

When measured against other major currencies, the rupee had a mixed performance. It slipped slightly against the Japanese yen, ending at 1.9159 compared to 1.9145 earlier. It also lost ground against the UAE dirham, closing at 77.58.

On the other hand, the rupee edged up to 39.69 against the Chinese yuan from 39.70, and gained marginally against the Saudi riyal, ending at 75.97. It also improved against the Swiss franc, strengthening by Rs1.28 to close at 354.37. Against the euro, the rupee rose by 78.11 paisa to settle at 330.33, and appreciated by 38.18 paisa against the British pound, which closed at 381.40.

Read next: PSX gains over 2,000 points, crosses 140k mark in record-breaking rally