Pakistan rupee registers gain against US dollar
- Currency settles at 276.82 against greenback
The Pakistani rupee continued its marginal gain against the US dollar, appreciating 0.01% in the inter-bank market on Friday.
The local unit closed the day at 276.82, a gain of Re0.03 against the greenback.
On Thursday, the Pakistani had rupee settled at 276.85 against the dollar.
Internationally, the Japanese yen hit its strongest level in more than a month on Friday, buoyed by safe-haven flows due to a fresh bout of risk aversion that also sent US Treasury yields sharply lower, pushing the dollar to a nearly three-week trough.
The moves in the currency markets were driven by doubts over the AI spending boom even as Brent crude futures stay above $110 per barrel, suggesting concerns over economic growth outweighed inflation worries.
The yen strengthened 0.3% on Friday to 156.28 per US dollar, leading gains among major currencies. It was set for a 1% gain for the week, its strongest weekly rise since early September.
The dollar index, which measures the greenback against a basket of currencies, was at 101.52, after touching its lowest level since the beginning of the month at 101.44 on Thursday.
US 10-year Treasury yields hovered near a one-month low at 4.953%, after tumbling on Thursday when equities sold off on renewed concerns about the sustainability of the AI boom, burnishing the safe-haven appeal of sovereign debt.
While demand for safety is intensifying, the beneficiaries differ depending on the risk, OCBC analysts said.
AI jitters favour the yen, Middle East tensions support the Canadian dollar and Norwegian crown due to rising oil prices, while French fiscal stress benefits the Swiss franc, they said, adding that for the US dollar, AI had become an increasingly two-way macro risk.
Oil prices, a key indicator of currency parity, rose over 1% on Friday after Houthi attacks in Saudi Arabia stoked concerns of further disruption to energy supplies from the Middle East.
Brent crude futures climbed $1.30, or 1.2%, to $114.47 a barrel as of 0639 GMT, while US West Texas Intermediate crude futures rose $1.37, or 1.4%, to $100.84.
Brent, which settled at its highest since May 4 on Thursday, is set to close higher for a third successive week, while WTI is on track to finish higher for a second straight week.
Comments