Rupee registers gain against US dollar
- Currency settles at 277.37 against greenback
The Pakistani Rupee gained marginally against the US Dollar, closing at 277.37. This occurred amidst a strengthening Japanese Yen and a subdued Dollar ahead of key US inflation data.
- Pakistani Rupee's marginal appreciation against the US Dollar.
- Japanese Yen's rally to a seven-month high.
- Upcoming US inflation data and Federal Reserve meeting.
- Rising oil prices due to Middle East conflict.
The Pakistani rupee extended its marginal gains against the US dollar, appreciating 0.01% in the interbank market on Tuesday.
The local unit closed the day at 277.37, a gain of Re0.03 against the greenback.
On Monday, the Pakistani rupee settled at 277.40 against the dollar.
Internationally, the Japanese yen climbed to fresh seven-month highs against the US dollar on Tuesday, as traders continued to unwind short positions amid growing bets of a Bank of Japan interest-rate hike while the dollar was subdued ahead of CPI data this week.
The yen strengthened to as much as 153.53 per dollar in morning trading, surpassing levels reached during Japan’s July intervention and hitting its strongest since February.
Traders and analysts said a slew of factors, including bets on a faster pace of Bank of Japan tightening, the potential for Japanese investors to repatriate their funds, unwinding carry trades and US political pressure, are now driving a sea-change for the embattled currency and turning away the bears.
The dollar index, which measures the greenback against a basket of currencies, was a touch weaker at 98.83 amid yen strength.
That left the euro and sterling both 0.06% stronger, last at $1.1628 and $1.3549, respectively.
Market focus now shifts to US inflation readings this week, the last set of key data releases ahead of the FOMC meeting on September 15 to 16, with traders now pricing a roughly 60% chance of a Federal Reserve rate hike this month following Friday’s stronger-than-expected nonfarm payrolls report.
Oil prices hit multi-week highs on Tuesday after Houthis attacked Saudi energy facilities and Tehran threatened the United States with “economic warfare”.
Brent crude futures were up 48 cents, or 0.49%, at $97.48 a barrel at 1311 GMT. U.S. West Texas Intermediate crude was at $92.55 a barrel, up $1.07, or 1.17%.
Brent earlier rose to $99.46, its highest since July 24, while WTI reached $94.73, its highest since June 8.
Inter-bank market rates for dollar on Tuesday
BID Rs 277.37
OFFER Rs 277.57
Open-market movement
In the open market, the PKR gained 4 paise for buying and 3 paise for selling against USD, closing at 278.21 and 279.06, respectively.
Against Euro, the PKR gained 20 paise for buying and lost 5 paise for selling, closing at 322.29 and 325.23, respectively.
Against UAE Dirham, the PKR remained unchanged for both buying and selling, closing at 75.67 and 76.28, respectively.
Against Saudi Riyal, the PKR gained 2 paise for buying and lost 3 paise for selling, closing at 73.96 and 74.51, respectively.
Open-market rates for dollar on Tuesday
BID Rs 278.21
OFFER Rs 279.06
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