The Pakistani rupee extended its marginal gains against the US dollar, appreciating 0.01% in the interbank market on Wednesday.
The local unit closed the day at 277.02, a gain of Re0.03 against the greenback.
On Tuesday, the Pakistani rupee settled at 277.05 against the dollar.
Internationally, the US dollar edged higher on Wednesday, buoyed by rising oil prices, while investors awaited Federal Reserve meeting minutes and remarks from policymakers for signals on a potential rate hike.
The euro gave back some of its gains in the prior session when French bonds rallied after the frontrunner in next spring’s presidential election outlined plans to cut spending. The yen weakened even after a dovish Bank of Japan board member said she would support interest rate increases.
Later on Wednesday, the US central bank is due to release minutes of its September policy meeting, when it raised interest rates for the first time since 2023, to contend with inflation.
Comments from Fed policymakers have come across as less hawkish following lower-than-expected personal consumption expenditure data and jobs figures last week.
The dollar index, which measures the US dollar against a basket of currencies, rose 0.3% to 102.13, recovering from a 0.27% slide on Tuesday. The euro fell 0.4% to $1.1216.
The Japanese yen weakened 0.13% to 158.31 per dollar, and sterling lost 0.21% to $1.3248.
Expectations for a Fed rate hike later this month have retreated but markets still anticipate more increases later in the year and next year.
The chance of a hike of at least 25 basis points in October stands at 21.6%, from about 51% a week ago, according to CME FedWatch, opens new tab, but markets are pricing in a 68.6% chance of a hike at the December meeting.
Oil prices, a key indicator of currency parity, climbed on Wednesday as the market weighed supply constraints from a storm heading for US oil-producing regions and attacks by Yemen’s Houthis on Saudi Arabia against increased supplies of Middle East crude.
Brent futures rose 81 cents, or 0.8%, to $101.39 a barrel by 0635 GMT.
US West Texas Intermediate (WTI) crude futures gained 61 cents, or 0.7%, to $90.05 a barrel.
Comments