Rupee registers gain against US dollar
- Settles at 278.25 against greenback
The Pakistani rupee marginally gained against the US dollar, which strengthened globally on Fed rate hike expectations, while oil prices fell due to increased supply.
- Pakistani rupee's marginal gain against the US dollar.
- US dollar index reaching a 13-month high.
- Global oil prices falling on increased supply.
PKR vs USD Exchange Rate USD / PKR
The Pakistani rupee posted marginal gain against the US dollar in the inter-bank market on Friday.
At close, the local currency settled at 278.25, a gain of Re0.01 against the greenback.
On Thursday, the local unit closed at 278.26.
Meanwhile, the dollar index hit a new 13-month high, fuelled by a firm pledge from new Federal Reserve Chair Kevin Warsh to tackle inflation and ensure price stability. That has prompted traders to assume there will be at least one rate hike this year, compared with a negligible possibility a couple of weeks ago.
The shift in tone from the Fed has hit Treasuries hard. Two-year yields are nearly 10 basis points higher than they were this time last week, while benchmark 10-year yields have fallen 3 basis points to 4.451%.
That reflects investors pricing in the chances of near-term rate rises, while gaining some confidence that these could prove short-lived given the drop in the oil price.
The cash US bonds market was closed on Friday for the Juneteenth holiday.
With the dollar in the ascendant, the yen stayed on the back-foot to trade around 161.3 , leaving the U.S. currency at its strongest since last July, and well beyond the 160-threshold that most see as a trigger for Japanese intervention.
Brent crude fell on Friday after Israel and Hezbollah agreed to a ceasefire, easing concerns over disruptions to Middle East oil supplies and raising hopes of broader de-escalation involving the United States and Iran.
Brent crude futures were down 85 cents, or 1.1%, at $79 a barrel by 1303 GMT, and were heading for a weekly decline of 9.5%.
Inter-bank market rates for dollar on Friday
BID Rs 278.25
OFFER Rs 278.45
Open-market movement
In the open market, the PKR lost 9 paise for buying and gained 1 paisa for selling against USD, closing at 278.64 and 279.54, respectively.
Against Euro, the PKR gained 1.71 rupee for buying and 1.33 rupee for selling, closing at 319.21 and 322.99, respectively.
Against UAE Dirham, the PKR gained 1 paisa for buying and lost 2 paise for selling, closing at 75.95 and 76.59, respectively.
Against Saudi Riyal, the PKR gained 1 paisa for buying and lost 2 paise for selling, closing at 74.28 and 74.87, respectively.
Open-market rates for dollar on Friday
BID Rs 278.64
OFFER Rs 279.54
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