The Pakistani rupee extended its marginal gains against the US dollar in the interbank market on Thursday.
The local unit closed the day at 277.26, a gain of Re0.01 against the greenback.
On Wednesday, the Pakistani rupee settled at 277.27 against the dollar.
Internationally, the US dollar clung to a seven-week high on Thursday after the Federal Reserve raised interest rates and flagged more hikes in coming months, while investors awaited decisions from the Bank of England later and the Bank of Japan on Friday.
The US dollar ripped higher alongside US Treasury yields, after new central bank chief Kevin Warsh joined a unanimous decision to hike interest rates, while officials validated a hawkish path and projected one more increase in 2026.
The US dollar’s strength pushed the euro to $1.1456, near a seven-week low, while sterling was flat at $1.3377 ahead of the Bank of England’s meeting later on Thursday.
At 156.20 per US dollar, the yen hovered near a two-week low as markets awaited the Bank of Japan’s decision on Friday.
The dollar index, which measures the greenback against a basket of currencies, last traded at 100.33, the strongest level since July 31.
Rate futures markets now reflect about a 90% probability of a follow-up quarter-percentage-point Fed rate hike by the end of this year, according to CME Group’s FedWatch Tool.
Oil prices, a key indicator of currency parity, eased about 3% on Thursday to a one-week low, extending losses as reports of additional Saudi crude cargoes through Oman eased supply concerns, though prices stayed above $100 a barrel on fears the Middle East conflict could widen.
Brent crude futures were down $3.85, or 3.64%, to $101.98 a barrel at 1000 GMT, after touching their lowest level since September 10, while US West Texas Intermediate futures were down $3, or 2.93%, at $99.43 a barrel, their lowest level since Sept. 11. Both contracts fell about $3 on Wednesday.
Inter-bank market rates for dollar on Thursday
BID Rs 277.26
OFFER Rs 277.46
Open-market movement
In the open market, the PKR gained 1.00 paisa for buying and 13.00 paisa for selling against USD, closing at 278.11 and 279.07, respectively.
Against Euro, the PKR gained 1.56 rupee for buying and 1.37 rupee for selling, closing at 318.52 and 321.61, respectively.
Against UAE Dirham, the PKR lost 1.00 paisa for buying and remained unchanged for selling, closing at 75.63 and 76.22, respectively.
Against Saudi Riyal, the PKR lost 3.00 paisa for buying and 1.00 paisa for selling, closing at 73.93 and 74.44, respectively.
Open-market rates for dollar on Thursday
BID Rs 278.11
OFFER Rs 279.07