Rupee sees further improvement against US dollar
- Settles at 277.25
The Pakistani rupee saw marginal gains against the US dollar, while global currencies like the yen, pound, and euro remained largely flat amidst anticipated central bank rate decisions and fluctuating oil prices.
- Pakistani rupee's marginal gain against the US dollar.
- Japanese yen weakening before an expected Bank of Japan rate hike.
- Global currency market reactions to central bank decisions.
- Anticipated Federal Reserve rate hike next month.
The Pakistani rupee extended its marginal gains against the US dollar in the interbank market on Friday.
The local unit closed the day at 277.25, a gain of Re0.01 against the greenback.
On Thursday, the Pakistani rupee settled at 277.26 against the dollar.
Globally, the Japanese yen got off to a weak start against the US dollar and the euro at the start of Asian trading on Friday, with currency markets in a subdued mood ahead of an expected rate hike from the Bank of Japan later in the trading session.
The yen fell 0.1% to 156.19 yen per US dollar, resuming its decline after snapping a three-day losing streak on Thursday as traders prepare for the Japanese central bank to lift interest rates to the highest level in more than three decades.
The British pound was flat at a 2-1/2-month low of $1.3359 after the Bank of England held interest rates on Thursday and unexpectedly paused sales of government bonds for six months.
The euro was flat at $1.1478.
The US dollar index, which measures the greenback’s strength against a basket of six currencies, was flat at 100.2100, after edging back from a 2-1/2-month high on Thursday.
Traders narrowly expect a hike from the Federal Reserve next month as investors say they are becoming more confident in Chair Kevin Warsh’s efforts to reassert the central bank’s independence from the White House.
Fed funds futures are pricing an implied 53% probability of a quarter-point hike at the central bank’s next two-day meeting next month, compared with a 27.2% chance a week ago, according to the CME Group’s FedWatch tool.
Oil prices, a key indicator of currency parity, fell on Friday as easing concerns over Saudi supply disruptions outweighed anxiety about a widening of conflict across the Middle East.
Brent crude futures fell by 88 cents, or 0.84%, to $103.94 a barrel by 1225 GMT. US West Texas Intermediate futures were little changed at $102.15.
Benchmark Brent prices are on track for their first weekly loss in three, down 0.8%.
Inter-bank market rates for dollar on Friday
BID Rs 277.25
OFFER Rs 277.45
Open-market movement
In the open market, the PKR lost 8.00 paisa for buying and 3.00 paisa for selling against USD, closing at 278.19 and 279.10, respectively.
Against Euro, the PKR lost 35.00paisa forbuying and 11.00paisa for selling, closing at 318.87and 321.72, respectively.
Against UAE Dirham, the PKR lost 2.00 paisa for buying and 3.00 paisa for selling, closing at 75.65 and 76.25, respectively.
Against Saudi Riyal, the PKR lost 2.00 paisa for buying and 3.00 paisa for selling,closing at 73.95 and 74.47, respectively.
Open-market rates for dollar on Friday
BID Rs 278.19
OFFER Rs 279.10
Comments