Rupee registers gain against US dollar
- Settles at 278.21 against greenback
The Pakistani rupee posted a marginal gain against the US dollar, closing at 278.21, while the US dollar held firm globally amid hawkish Federal Reserve expectations.
- Pakistani rupee's marginal gain against the US dollar.
- Global US dollar strength and hawkish Federal Reserve bets.
- International oil price movements.
PKR vs USD Exchange Rate USD / PKR
The Pakistani rupee posted marginal gain against the US dollar in the inter-bank market on Tuesday.
At close, the local currency settled at 278.21, a gain of Re0.01 against the greenback.
On Monday, the local unit closed at 278.22.
Meanwhile, the US dollar held firm on Tuesday as traders positioned for a more hawkish Federal Reserve and oil prices rebounded following steep losses, while the yen flirted with a four-decade low.
The dollar index, which measures the greenback against a basket of currencies including the yen and the euro, was a shade higher at 101.01, not far from the one-year high of 101.13 hit late last week.
“The dollar is holding firm on rising yields and hawkish Fed bets,” with limited guidance from the Fed fuelling volatility,” said Sim Moh Siong, FX strategist at OCBC.
The bank now expects a modestly stronger dollar amid rising risks for tighter US monetary policy, revising a previous call for the currency to be rangebound, he added.
Oil prices fell more than a $1 on Tuesday as investors monitored crude flows through the Strait of Hormuz amid signs of progress in US-Iran peace talks.
Brent crude futures declined $1.18, or around 1.2%, to $76.72 a barrel while US West Texas Intermediate fell $1.18, or 1.6%, to $72.68 a barrel by 10:06 a.m. ET (1406 GMT), after earlier dropping to a near four-month low of $72.48.
Inter-bank market rates for dollar on Tuesday
BID Rs 278.21
OFFER Rs 278.41
Open-market movement
In the open market, the PKR gained 4 paise for buying and remained unchanged for selling against USD, closing at 278.63 and 279.46, respectively.
Against Euro, the PKR gained 85 paise for buying and 55 paise for selling, closing at 318.52 and 322.33, respectively.
Against UAE Dirham, the PKR remained unchanged for both buying and selling, closing at 75.92 and 76.55, respectively.
Against Saudi Riyal, the PKR gained 4 paise for buying and lost 1 paisa for selling, closing at 74.24 and 74.87, respectively.
Open-market rates for dollar on Tuesday
BID Rs 278.63
OFFER Rs 279.46
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