The Pakistani rupee extended its marginal gains against the US dollar in the interbank market on Tuesday.
The local unit closed the day at 277.21, a gain of Re0.01 against the greenback.
On Monday, the Pakistani rupee settled at 277.22 against the dollar.
Globally, the Japanese yen was under pressure from a firm US dollar on Tuesday as traders wagered on policymakers in Japan struggling to keep up with a hawkish turn by global central banks, leaving the country’s interest rates at a wide gap with major peers.
Moves were contained thanks to a holiday in Japan and because of the risk of intervention, after the Nikkei newspaper reported Japan checked dollar/yen rates on Friday. Such a move is often a precursor to stepping into the market.
After drifting lower on Monday, the yen traded at 157.33 versus the dollar early on Tuesday, while broader financial markets were buoyed by falling oil prices.
Other currency pairs were mostly steady, with the euro at $1.1467, though cryptocurrencies have rallied in the past day to lift bitcoin to an eight-month high above $87,000.
Markets are pricing about a 30% chance that the BOJ hikes its benchmark short-term rate to 1.5% in October and a roughly 55% chance that the Fed will lift its funds rate window by 25 basis points to 4% to 4.25%.
The Aussie dollar hovered at $0.7120. Sterling traded around $1.3372.
The New Zealand dollar was pinned near multi-month lows at $0.5708 since Kiwi rates, sitting at 2.75%, are much lower than peers.
Oil prices, a key indicator of currency parity, fell to a two-week low on Tuesday as prospects for Gulf supplies improved, with Iran signaling it could reopen the Strait of Hormuz within seven days and Saudi Arabia set to resume exports from its Red Sea port of Yanbu.
The Brent crude futures November contract was down $2.11, or 2.1%, to $98.23 a barrel at 1151 GMT.
The WTI October contract, which expires on Tuesday, lost $2.48, or 2.59%, to $93.30 a barrel.
The more actively traded November contract was down $2.36, or 2.55%, at $90.01 a barrel.
Inter-bank market rates for dollar on Tuesday
BID Rs 277.21
OFFER Rs 277.41
Open-market movement
In the open market, the PKR gained 4.00 paisa for buying and lost 19.00 paisa for selling against USD, closing at 278.19 and 279.26, respectively.
Against Euro, the PKR gained 22.00 paisa for buying and 30.00 paisa for selling, closing at 318.63 and 321.63, respectively.
Against UAE Dirham, the PKR lost 2.00 paisa for buying and remained unchanged for selling, closing at 75.70 and 76.27, respectively.
Against Saudi Riyal, the PKR lost 2.00 paisa for buying and gained 1.00 paisa for selling, closing at 74.01 and 74.51, respectively.
Open-market rates for dollar on Tuesday
BID Rs 278.19
OFFER Rs 279.26
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