Rupee records gain against US dollar
- Currency settles at 277.35 against greenback
The Pakistani rupee marginally gained against the US dollar in the interbank market, closing at 277.35, amidst global currency market reactions to rising oil prices and bond yields.
- Pakistani rupee's performance against the US dollar.
- Global currency market reactions to rising oil prices.
- Upcoming US inflation data and FOMC meeting.
- Open market exchange rates for PKR against other currencies.
The Pakistani rupee extended its marginal gains against the US dollar in the interbank market on Thursday.
The local unit closed the day at 277.35, a gain of Re0.01 against the greenback.
On Wednesday, the Pakistani rupee settled at 277.36 against the dollar.
Internationally, currency markets treaded water in cautious trading on Thursday as investors weighed a fresh surge in oil prices and global bond yields, while the yen’s powerful rally also took a breather ahead of US PPI and inflation readings.
The fresh energy-induced inflation pressure sent global bond yields back on an upward trajectory, with benchmark 10-year Treasury yields hitting their highest levels since 2023 as a buyback programme of longer-dated bonds also disappointed.
The greenback found some marginal relief, leaving the euro and sterling slightly weaker at $1.1633 and 1.3547, respectively.
That also paused the Japanese currency’s climb to fresh seven-month highs, with the yen last trading a shade weaker at 153.70 after being mostly stuck in a tight trading range ahead of an expected Bank of Japan rate hike next week.
The dollar index, which measures the greenback against a basket of currencies, was last traded at 98.81, inching away from a three-week low.
Attention is now firmly on macros to round out the week. Market focus will later shift to US inflation readings, including producer prices later on Thursday, and CPI on Friday, the last set of key data releases ahead of the FOMC meeting on September 15 to 16.
Oil prices, a key indicator of currency parity, jumped 4% on Thursday with benchmark Brent crude hitting $105 a barrel after the biggest spike in attacks on shipping since the Iran war began spurred trader concerns about supply disruptions.
Brent crude futures were up $4.05, or 4%, at $105.26 a barrel by 1215 GMT. US oil topped $100 a barrel for the first time since May as West Texas Intermediate crude futures rose $3.99, or 4.15%, to $100.04.
Inter-bank market rates for dollar on Thursday
BID Rs 277.35
OFFER Rs 277.55
Open-market movement
In the open market, the PKR lost 2 paise for both buying and selling against USD, closing at 278.24 and 279.08, respectively.
Against Euro, the PKR lost 16 paise for buying and 30 paise for selling, closing at 322.86 and 325.75, respectively.
Against UAE Dirham, the PKR remained unchanged for both buying and selling, closing at 75.67 and 76.26, respectively.
Against Saudi Riyal, the PKR gained 1 paisa for buying and 2 paise for selling, closing at 73.94 and 74.47, respectively.
Open-market rates for dollar on Thursday
BID Rs 278.24
OFFER Rs 279.08
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