Rupee registers gain against US dollar
- Currency settles at 277.40 against greenback
The Pakistani rupee saw marginal gains against the US dollar, closing at 277.40, as the dollar weakened internationally amidst Middle East tensions and rising oil prices.
- International US dollar weakness.
- Middle East tensions and global inflation.
- Rising oil prices and supply disruptions.
The Pakistani rupee extended its marginal gains against the US dollar on Monday.
The local unit closed the day at 277.40, a gain of Re0.01 against the greenback.
On Friday, the Pakistani rupee settled at 277.41 against the dollar.
Internationally, the US dollar was on shaky ground on Monday, despite a ramp-up in US rate hike bets as Middle East tensions raised the prospect of broader inflationary pressures that could force global central banks to tighten policy in tandem.
A shift in sentiment towards the Japanese yen and worries about ever-growing US debt and policy uncertainties also weighed on the greenback.
Moves in currencies were largely subdued in early Asia trade with US markets closed for a holiday, though the dollar struggled to sustain a brief lift it received from Friday’s blowout US jobs report.
The euro was up marginally at $1.1618, while sterling was little changed at $1.3519. Against a basket of currencies, the dollar fell 0.07% to 99.09, not far from its recent low of 98.558.
Traders moved to price in a roughly 57% chance the Federal Reserve will hike rates this month in the wake of the nonfarm payrolls release, with much now depending on Friday’s inflation data.
Oil prices were near six-week highs on Monday, creeping closer to $100 a barrel, as tit-for-tat strikes between the US and Iran on vessels sailing in the Strait of Hormuz and other areas kept crude oil flows in the Middle East low.
Brent crude futures rose $1.19, or 1.2% to $97.47 a barrel by 1214 GMT, having earlier hit their highest point since July 24 at $97.93.
US West Texas Intermediate crude also hovered near a recent six-week high at $92.26 a barrel, up 78 cents.
Inter-bank market rates for dollar on Monday
BID Rs 277.40
OFFER Rs 277.60
Open-market movement
In the open market, the PKR gained 4 paise for buying and 6 paise for selling against USD, closing at 278.25 and 279.09, respectively.
Against Euro, the PKR gained 4 paise for buying and 14 paise for selling, closing at 322.49 and 325.18, respectively.
Against UAE Dirham, the PKR gained 1 paisa for both buying and selling, closing at 75.67 and 76.28, respectively.
Against Saudi Riyal, the PKR lost 3 paise for buying and gained 1 paisa for selling, closing at 73.98 and 74.48, respectively.
Open-market rates for dollar on Monday
BID Rs 278.25
OFFER Rs 279.09
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