Rupee registers gain against US dollar
- Settles at 278.21
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.
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 U.S. monetary policy, revising a previous call for the currency to be rangebound, he added.
Moreover, oil prices inched down on Tuesday, extending losses from the previous session.
Brent crude futures fell 20 cents, or 0.3%, to $77.70 a barrel and US West Texas Intermediate declined to $73.74 a barrel, down 12 cents, or 0.2%, as of 0323 GMT.
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