The Pakistani rupee extended its marginal gains against the US dollar in the interbank market on Wednesday.
The local unit closed the day at 277.11, a gain of Re0.01 against the greenback.
On Tuesday, the Pakistani rupee settled at 277.12 against the dollar.
Internationally, the US dollar stood near this year’s high versus the euro on Wednesday and was poised for the largest monthly rise against it for 14 months, powered by US growth and rising US interest rates in contrast to the energy and debt worries swirling in Europe.
Overnight, the euro dipped to its lowest since May 2025, at $1.1312, and traded nearby at $1.1339 in Asia. The euro is also testing support around 178 yen.
Through September the US dollar is up nearly 2.5% on the euro, and the rising greenback also pushed its Australian counterpart below 70 cents for the first time since early August.
The dollar also made a 16-1/2-month top on the Swiss franc overnight at 0.8358 francs. The franc has suffered, in part, because investors have gone looking for low-yielding alternatives to yen to sell in search of carry elsewhere.
The yen has fallen out of favour as a short against the US dollar following US-Japan yen buying in July and August, which has been followed by warnings not to test their resolve, as well as a pickup in the pace of Japanese rate hikes.
The US dollar has fallen 1.5% on the yen in September.
The Fed’s preferred inflation yardstick, US core PCE, is due out later on Wednesday though the market is focused on Friday’s US jobs report which, if strong, could reinforce expectations that US interest rates are on the rise.
Oil prices, a key indicator of currency parity, rose on Wednesday and were on track for a big monthly gain as US-Iran talks aimed at ending their war stalled and tight fuel markets continued to underpin prices despite recovering Middle East crude supplies.
The Brent futures November contract, which expires on Wednesday, was up 57 cents, or 0.6%, to $103.16 a barrel at 0944 GMT. The more active December contract was up 94 cents to $97.10. US West Texas Intermediate crude was up 82 cents, or 0.9%, to $90.20.
Comments