The Pakistani rupee extended its marginal gains, appreciating 0.01%, against the US dollar in the interbank market on Wednesday.
The local unit closed the day at 277.27, a gain of Re0.03 against the greenback.
On Tuesday, the Pakistani rupee settled at 277.30 against the dollar.
Internationally, the US dollar was hanging on to recent gains on Wednesday and trading near multi-week highs on a handful of major peers ahead of a Federal Reserve decision where traders expect the first of what could be several US interest rate hikes.
The US dollar had advanced along with yields overnight, running furthest against the yen and New Zealand dollar, leaving the kiwi to hit a two-month low of $0.5749 in Asia morning trade and the yen at a one-week low of 155.43 per dollar.
At $1.1535, the euro was not far from Monday’s one-month low of $1.1523, while sterling, at $1.3470, was not far above a six-week trough of $1.3464 it had made on Monday.
Currency markets haven’t really moved that much while global bond yields have been climbing in concert over recent weeks because sovereign bonds have moved in tandem and not shifted relative differences between countries’ yields very far.
But the dollar’s gained traction in the last few sessions on thinking that despite Warsh being hired by President Donald Trump to cut interest rates, he’ll need to hike a few times to show the Fed is serious about taming inflation that is being fanned by war with Iran and the resulting energy price surge.
Oil prices, a key indicator of currency parity, fell on Wednesday as reports that Saudi Arabia was offering additional crude cargoes via Oman eased concerns about the scale of Middle East supply disruptions, while European diesel prices hovered near a record high.
Brent crude futures were down $1.30, or 1.2%, at $107.45 a barrel by 1307 GMT.
U.S. West Texas Intermediate futures were down $1.96, or 1.85%, at $103.87.
Inter-bank market rates for dollar on Wednesday
BID Rs 277.27
OFFER Rs 277.47
Open-market movement
In the open market, the PKR gained 4.00 paisa for buying and lost 18.00 paisa for selling against USD, closing at 278.12 and 279.20, respectively.
Against Euro, the PKR lost 9.00 paisa for buying and 35.00 paisa for selling, closing at 320.08 and 322.98, respectively.
Against UAE Dirham, the PKR lost 2.00 paisa for buying and 6.00 paisa for selling, closing at 75.62 and 76.22, respectively.
Against Saudi Riyal, the PKR lost 2.00 paisa for buying and 1.00 paisa for selling, closing at 73.90 and 74.43, respectively.
Open-market rates for dollar on Wednesday
BID Rs 278.12
OFFER Rs 279.20
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