KARACHI: The Pakistani rupee experienced a marginal decline of 0.04% against the US dollar in the inter-bank market on Thursday, closing at 278.97, down by Re0.1 from Wednesday’s rate of 278.87.

Internationally, the US dollar remained stable, though traders were eyeing the European Central Bank (ECB) meeting, where expectations were high for a rate cut, which could put pressure on the euro. Markets were pricing in a potential 25 basis point rate reduction to 2.75%, with further cuts expected in the coming months. In the US, the Federal Reserve held interest rates steady, signaling a pause in its easing cycle. Despite this, Treasury yields fluctuated, and markets adjusted expectations for future rate cuts. Oil prices dropped for a second day, following an unexpected rise in US crude stockpiles, with Brent crude futures falling to $76.15 a barrel.

In the open market, the Pakistani rupee saw a slight loss, closing at 278.84 for buying and 280.82 for selling against the dollar. The rupee gained 7 paise against the euro for buying, while losing 3 paise against the Saudi Riyal for buying. The rates for other currencies remained mostly stable.