The Pakistani rupee strengthened against the US dollar, appreciating 0.01% in the inter-bank market on Friday.
At close, the local currency settled at 280.52, a gain of Re0.03 against the greenback.
On Thursday, the local unit closed at 280.55.
Globally, the US dollar was heading for its worst weekly performance since late July on Friday as traders ramped up bets for further monetary easing from the Federal Reserve next month, while liquidity was thinned by the US Thanksgiving holiday.
The dollar index, which measures the greenback’s strength against a basket of six major peers, was last trading up 0.1% at 99.624, recovering some ground after five days of decline, which pushed it to its worst one-week loss since July 21.
US Fed funds futures are pricing an implied 87% probability of a 25-basis-point cut at the Federal Reserve’s next policy meeting on December 10, compared to a 39% chance a week earlier, the CME Group’s FedWatch tool showed.
The yield on 10-year Treasury bonds was last up 0.8 basis point at 4.0037%, rebounding after five days of decline that saw the 4% threshold briefly crossed twice.
Oil prices, a key indicator of currency parity, were flat on Friday while US crude futures ticked higher as drawn-out Russia-Ukraine peace talks kept geopolitical risks elevated and traders kept an eye on Sunday’s OPEC+ meeting for clues about potential output changes.
US West Texas Intermediate crude futures resumed trading after being frozen due to a system outage at exchange operator CME Group, blamed on a cooling issue at CyrusOne data centres. Brent oil trades on the Intercontinental Exchange, or ICE.
Front-month Brent crude futures for January , which expire on Friday, were down 6 cents, or 0.09%, at $63.28 a barrel at 10:11am EDT (1511 GMT). The more active February contract changed hands at $62.96, up 9 cents, or 0.14%.
WTI crude traded at $59.23 a barrel, up 58 cents, or 0.99%, from Wednesday’s close. There was no settlement on Thursday due to the Thanksgiving holiday in the United States.
Inter-bank market rates for dollar on Friday
BID Rs 280.52
OFFER Rs 280.72
Open-market movement
In the open market, the PKR gained 13 paise for buying and 4 paise for selling against USD, closing at 281.09 and 281.56, respectively.
Against Euro, the PKR gained 39 paise for buying and 49 paise for selling, closing at 324.91 and 327.96, respectively.
Against UAE Dirham, the PKR lost 1 paisa for buying and gained 3 paise for selling, closing at 76.63 and 77.37, respectively.
Against Saudi Riyal, the PKR gained 2 paise for buying and 7 paise for selling, closing at 74.91 and 75.49, respectively.
Open-market rates for dollar on Friday
BID Rs 281.09
OFFER Rs 281.56