Rupee inches up against US dollar
- Currency settles at 278.71 against greenback
The Pakistani rupee strengthened against the US dollar due to hopes of de-escalation in the Iran-US conflict, which weakened the dollar and lowered global oil prices.
- Daily performance of the Pakistani rupee against the US dollar.
- Global factors influencing the US dollar's defensive position.
- Impact of the Iran-US peace deal hopes on oil prices.
The Pakistani rupee strengthened against the US dollar during trading in the inter-bank market on Thursday.
At close, the local currency settled at 278.71, a gain of Re0.01 against the greenback.
On Wednesday, the local unit closed at 278.72.
Globally, the US dollar remained on the defensive on Thursday as hopes for a de-escalation in the Iran-US war supported oil-exposed currencies, while Tokyo resumed its verbal intervention in support of the yen, keeping speculators cautious.
Iran said on Wednesday it was reviewing a US peace proposal that sources indicated would formally end the war but leave unresolved key US demands that Iran suspend its nuclear programme and reopen the Strait of Hormuz.
Analysts were worried that any agreement that did not open the vital waterway to shipping would likely see oil prices rise again, with Brent edging 0.8% higher in early trading.
Hopes for de-escalation had seen oil prices slide overnight, easing inflationary fears and pulling down Treasury yields as markets pared back the risk of U.S. rate hikes.
That left the dollar index back at 97.950 and well short of last week’s top of 99.092.
The pullback in oil had boosted the euro, given the continent is far more reliant on imported oil than the United States, and it was 0.1% firmer at $1.1757 having touched a two-week top of $1.1797 overnight.
Oil prices fell 3% on Thursday, bouncing off session lows in volatile trade but staying down about 3%, keeping Brent below $100 a barrel on hopes that a U.S.-Iran peace deal could bring a gradual reopening of the Strait of Hormuz.
Brent crude futures were down $3.21, or 3.17%, at $98.06 a barrel at 11:21 a.m. ET (1521 GMT). U.S. West Texas Intermediate declined $3.15, or around 3.31%, at $91.93.
Inter-bank market rates for dollar on Thursday
BID Rs 278.71
OFFER Rs 278.91
Open-market movement
In the open market, the PKR gained 2 paise for buying and remained unchanged for selling against USD, closing at 279.18 and 279.98, respectively.
Against Euro, the PKR lost 34 paise for buying and 21 paise for selling, closing at 327.64 and 330.43, respectively.
Against UAE Dirham, the PKR lost 13 paise for buying and 15 paise for selling, closing at 76.00 and 76.85, respectively.
Against Saudi Riyal, the PKR gained 13 paise for buying and 17 paise for selling, closing at 74.32 and 75.03, respectively.
Open-market rates for dollar on Thursday
BID Rs 279.18
OFFER Rs 279.98