Rupee registers gain against US dollar
- Settles at 277.81 against greenback
The Pakistani Rupee marginally gained against the US Dollar in the inter-bank market, closing at 277.81, while global currency markets reacted to the Federal Reserve's decision and geopolitical events.
- Pakistani Rupee's marginal gain against the US dollar.
- Global dollar movements after the Federal Reserve's decision.
- Open market exchange rates for PKR against other currencies.
- Oil price changes influenced by geopolitical developments.
The Pakistani rupee extended its marginal gains against the US dollar on Thursday.
The local unit closed the day at 277.81, a gain of Re0.01 against the greenback.
On Wednesday, the Pakistani rupee settled at 277.82 against the dollar.
Globally, the US dollar found its footing at the start of Asian trading on Thursday after the Federal Reserve kept its policy interest rate on hold and Chair Kevin Warsh left markets guessing about how divisions on its rate-setting committee would resolve.
The dollar index, which measures the greenback’s strength against six currencies, nudged up 0.1% to 100.89 after the US said it was conducting air strikes in Iran.
The British pound was 0.1% weaker at $1.3355 ahead of a Bank of England interest rate decision on Thursday, with market participants expecting no change. The euro slid 0.1% to $1.1457.
The Australian dollar was steady along with its New Zealand counterpart at $0.6959 and $0.5795 respectively, while the yen was level at 163.455 yen per U.S. dollar.
Geopolitical developments offset earlier weakness in the greenback, which had fallen to its weakest since July 20 after the Fed decision.
Treasury bonds reacted violently to the Fed decision, with the 30-year yield climbing to its highest in almost two decades.
Fed funds futures are pricing in an implied 42.6% probability that the Fed will hold its rate at its next two-day meeting ending September 16, compared with a 24% chance before the Fed’s latest meeting, the CME Group’s FedWatch tool showed.
Oil prices fell on Thursday, as investors weighed talks between Oman and Iran over the Strait of Hormuz even as Washington and Tehran traded strikes on each other’s military targets again.
Brent futures were down $1.42, or 1.56%, at $89.32 a barrel at 1324 GMT after touching a high of $93.31.
Inter-bank market rates for dollar on Thursday
BID Rs 277.81
OFFER Rs 278.01
Open-market movement
In the open market, the PKR gained 5 paise for buying and remained unchanged for selling against USD, closing at 278.87 and 279.88, respectively.
Against Euro, the PKR lost 1.34 rupee for buying and 1.56 rupee for selling, closing at 320.86 and 323.94, respectively.
Against UAE Dirham, the PKR gained 3 paise for buying and 1 paisa for selling, closing at 76.35 and 76.97, respectively.
Against Saudi Riyal, the PKR gained 5 paise for both buying and selling, closing at 74.66 and 75.22, respectively.
Open-market rates for dollar on Thursday
BID Rs 278.87
OFFER Rs 279.88
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