Pakistani rupee registers gain against US dollar
- Settles at 277.91
The Pakistani rupee strengthened against the US dollar, closing at 277.89, amidst broader global currency shifts influenced by rising oil prices and geopolitical tensions.
- Pakistani rupee's continued gains against the US dollar.
- Global currency market movements, including the yen's four-decade low.
- Influence of rising oil prices and Middle East geopolitical tensions.
The Pakistani rupee extended its marginal gains against the US dollar on Wednesday.
The local unit closed the day at 277.91, a gain of Re0.01 against the greenback.
On Tuesday, the Pakistani rupee settled at 277.92 against the dollar.
Credit ratings agency S&P Global raised Pakistan’s long-term sovereign credit rating to “B” from “B-”, citing stronger institutional stability and effective implementation of reforms under an IMF program.
“The stable outlook reflects our view of Pakistan’s improved political and institutional settings. Entrenched economic reforms will bring about a sustained period of steady growth and fiscal consolidation,” said S&P.
Internationally, the dollar gained broadly overnight, briefly pushing the euro just below $1.14, and it was holding its ground as US forces began an 11th straight night of strikes on Iran.
The euro was last at $1.1401, while the Australian dollar clung to the 70 cent level and the New Zealand dollar sat on support just above its 200-day moving average of $0.5825.
Sterling is also testing support, and fell through its 200-day moving average to $1.3385 with traders weighing how new UK finance minister John Healey plans to fund spending.
Oil prices rose to their highest in almost six weeks on Wednesday, with Brent crude surpassing $95 a barrel, on mounting concerns about disruptions to Middle Eastern supply routes because of escalating hostilities between the U.S. and Iran and threats to shipping by the Iran-backed Houthi militia in Yemen.
Brent crude futures were up $2.23, or 2.45%, at $93.24 a barrel by 1323 GMT, after hitting a session high of $95.47.
Inter-bank market rates for dollar on Wednesday
BID Rs 277.91
OFFER Rs 278.11
Open-market movement
In the open market, the PKR gained 77 paise for buying and lost 29 paise for selling against USD, closing at 278.03 and 279.94, respectively.
Against Euro, the PKR gained 42 paise for buying and 40 paise for selling, closing at 319.19 and 322.18, respectively.
Against UAE Dirham, the PKR lost 3 paise for both buying and selling, closing at 76.27 and 76.81, respectively.
Against Saudi Riyal, the PKR lost 7 paise for buying and gained 1 paisa for selling, closing at 74.60 and 75.07, respectively.
Open-market rates for dollar on Wednesday
BID Rs 278.03
OFFER Rs 279.94
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