Pakistan rupee records gain against US dollar
- Currency settles at 276.85 against greenback
The Pakistani rupee continued its marginal gain against the US dollar in the inter-bank market on Thursday.
The local unit closed the day at 276.85, a gain of Re0.01 against the greenback.
On Wednesday, the Pakistani had rupee settled at 276.86 against the dollar.
Internationally, a downdraft in the US dollar took a pause on Thursday as investors began hunkering down ahead of a slew of central bank meetings next week, where hawkish holds are expected on interest rates in Japan, the US and Europe.
The currency market is long the dollar on the assumption the AI boom keeps the US economy humming and that strong growth supports interest rates staying higher for longer.
Recent gains for sterling and currencies in Canada, Australia and New Zealand, all of which have lately touched their highest on the dollar in several weeks, suggest dollar bets have been pared a bit, though moves on Thursday were slight.
Sterling, which hit a one-month high of $1.3409 earlier in the week, has been supported by hotter-than-expected British inflation and held at $1.33955.
The Australian dollar, which made a three-week top on Wednesday, is hanging on above 70 US cents at $0.7025, while expectations for a rate hike next week in New Zealand are hoisting the kiwi to a one-month high of $0.5709.
The European Central Bank is expected to hold its benchmark rate at 2.5% next week, though a hike is all but priced in before the year’s end. Markets have priced a hold in Tokyo, too, with the next hike — to 1.5% — expected early next year.
The Federal Reserve is seen on hold in October, with the Fed funds rate window at 3.75-4%, but hiking in December.
Oil prices, a key indicator of currency parity, rallied over $2 a barrel on Thursday after more Houthi attacks in Saudi Arabia stoked concerns over a broader escalation of conflict and further disruptions to crude supplies from the world’s key exporting region.
Brent crude futures climbed$2.82, or 2.59%, to $111.64 a barrel at 0626 GMT, close to a five-month high.
US West Texas Intermediate crude gained $2.24, or 2.31%, to $99.39.