Rupee gains further ground against US dollar
- Currency settles at 278.57 against greenback
The Pakistani rupee strengthened against the US dollar, appreciating 0.01% in the inter-bank market on Tuesday.
At close, the local currency settled at 278.57, a gain of Re0.03 against the greenback.
On Monday, the local unit closed at 278.60.
Internationally, the dollar found support at the start of Asian trading on Tuesday after US President Donald Trump said he had paused a planned attack against Iran to allow negotiations, and bond markets stabilised after a two-day selloff.
The US dollar index, which measures the greenback’s strength against a basket of six currencies, held steady at 99.026, attracting bids after easing fears of an escalation in the war pushed the gauge 0.3% lower on Monday, snapping a five-day winning streak.
The yield on the US 10-year Treasury bond was down 3 basis points at 4.591%, retreating after hitting its highest level in a year as fears a lasting jump in inflation eased.
The dollar had gained strength during the past week as a safe haven from an escalation of the war in the Middle East and a selloff gripping global bond markets, as investors repriced the risk that central banks would have to take action to contain inflation with the Strait of Hormuz remaining closed and energy markets disrupted.
Fed funds futures are pricing an implied 36.2% probability of a 25-basis-point hike at the U.S. central bank’s two-day meeting on December 9, compared to a 0.5% chance a month ago, according to the CME Group’s FedWatch tool.
Oil prices fell on Tuesday, with global benchmark Brent crude dropping 1%, after U.S. President Donald Trump said he had paused a planned attack on Iran to allow for negotiations to end the war in the Middle East.
Trump posted on social media on Monday that he was holding off from a military attack that had been scheduled for Tuesday while efforts to reach a deal with Iran continued, adding that the United States was ready to resume attacks if a deal is not reached.
Brent futures for July were down $1.27, or 1.13%, at $110.83 a barrel by 1319 GMT. The U.S. West Texas Intermediate crude contract for June delivery, which expires on Tuesday, slipped 45 cents, or 0.41%, to $108.21. The more active July contract fell 38 cents, or 0.36%, to $104.
Inter-bank market rates for dollar on Tuesday
BID Rs 278.57
OFFER Rs 278.77
Open-market movement
In the open market, the PKR gained 7 paise for buying and 9 paise for selling against USD, closing at 278.93 and 279.65, respectively.
Against Euro, the PKR gained 13 paise for buying and lost 3 paise for selling, closing at 323.57 and 326.96, respectively.
Against UAE Dirham, the PKR gained 3 paise for buying and remained unchanged for selling, closing at 75.86 and 76.69, respectively.
Against Saudi Riyal, the PKR gained 4 paise for buying and 6 paise for selling, closing at 74.18 and 74.91, respectively.
Open-market rates for dollar on Tuesday
BID Rs 278.93
OFFER Rs 279.65