Pakistan rupee gains against US dollar
- Settles at 277.15 against greenback
The Pakistani Rupee edged up against the US Dollar in the interbank market to 277.15, contrasting with a stronger global dollar driven by US-Iran tensions and upcoming economic data.
- Global strengthening of the US dollar.
- Impact of US-Iran tensions on oil prices.
- Upcoming US economic data and Fed rate hike.
The Pakistani rupee extended its marginal gains against the US dollar in the inter-bank market on Monday.
The local unit closed the day at 277.15, a gain of Re0.01 against the greenback.
During the previous week, the rupee closed at 277.16 against the greenback, a gain of Re0.09 from 277.25 it had closed at a week earlier.
Internationally, the US dollar inched higher to hold near a two-month high on Monday, as the US-Iran standoff continued to push up oil prices while investors looked ahead to a data-packed week for more clues on inflation and central banks’ moves.
The euro and sterling were both 0.1% weaker against the dollar, last at $1.1379 and $1.3232, respectively, hovering near multi-month lows against the greenback.
The dollar index, which measures the US currency against a basket of peers, was a touch higher at 101.15 and on track for a 1.7% gain in September, its best month since June.
The market’s focus is set to turn to US data releases as the week unfolds, with the PCE Index on Wednesday and non-farm payrolls on Friday both expected to be consistent with further policy tightening.
Currently, markets are seeing a 65% chance of a rate hike from the Fed when the central bank meets next at the end of October, according to CME Group’s FedWatch tool.
Oil prices, a key indicator of currency parity, rose about 2% on Monday after US President Donald Trump rejected a peace deal from Iran to resolve their conflict and reopen the Strait of Hormuz.
Brent futures were up $1.68, or 1.6%, at $106 barrel by 1320 GMT, after hitting their highest since September 15 earlier in the session. US West Texas Intermediate crude was at $94.10 a barrel, up $1.69, or 1.8%.
Inter-bank market rates for dollar on Monday
BID Rs 277.15
OFFER Rs 277.35
Open-market movement
In the open market, the PKR lost 5 paise for buying and 3 paise for selling against USD, closing at 278.17 and 279.23, respectively.
Against Euro, the PKR gained 16 paise for buying and 13 paise for selling, closing at 316.27 and 319.36, respectively.
Against UAE Dirham, the PKR gained 2 paise for buying and lost 1 paisa for selling, closing at 75.70 and 76.30, respectively.
Against Saudi Riyal, the PKR lost 1 paisa for buying and 2 paise for selling, closing at 74.03 and 74.54, respectively.
Open-market rates for dollar on Monday
BID Rs 278.17
OFFER Rs 279.23
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