Pakistan rupee registers marginal gain against US dollar
- Settles at 278.10
The Pakistani rupee posted a marginal gain against the US dollar, settling at 278.10, as the dollar weakened globally amid reduced expectations for Federal Reserve rate hikes.
- Pakistani rupee's marginal gain against the dollar.
- Global US dollar weakness and Fed rate hike expectations.
- Oil price increases due to US-Iran talks.
The Pakistani rupee posted marginal gain against the US dollar in the inter-bank market on Tuesday.
At close, the local currency settled at 278.10, a gain of Re0.01 against the greenback.
On Monday, the rupee closed at 278.11 against the dollar.
Meanwhile, in the broader market, the dollar was on shaky ground as investors continued to pare back expectations of U.S. rate hikes this year following an underwhelming jobs report that came in far below expectations.
The euro edged a touch higher to $1.1442, extending gains from overnight, while sterling rose to a more than two-week high of $1.34005.
Against a basket of currencies, the dollar was last at 100.86.
Investors are now pricing in roughly 29 basis points worth of Federal Reserve rate hikes by December, down from about 38 bps a week ago.
Furthermore, oil rose on Tuesday as traders’ nervousness about a lack of progress on peace talks between the United States and Iran offset any price impact of a slight recovery in shipping through the Strait of Hormuz.
Brent crude futures gained $1.02, or 1.42%, to $73.01 a barrel, while US West Texas Intermediate crude rose 93 cents, or 1.36%, to $69.48 a barrel as of 0748 GMT.
“The deal is by no means signed yet, so something can still go wrong and any comments from either side could raise concern which is helping to underpin prices and it’s basically removing some of the recent intense focus on an increasingly oversupplied market,” Saxo Bank analyst Ole Hansen said.
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