Pakistan rupee registers gain against US dollar
- Currency settles at 276.82 against greenback
The Pakistani Rupee marginally gained against the US Dollar in the inter-bank market, closing at 276.82. This occurred amidst global currency shifts driven by AI jitters and rising oil prices.
- Japanese Yen's strength amid AI jitters and safe-haven demand.
- Impact of rising oil prices and Middle East tensions on currencies.
- PKR's performance against other major currencies in the open market.
The Pakistani rupee continued its marginal gain against the US dollar, appreciating 0.01% in the inter-bank market on Friday.
The local unit closed the day at 276.82, a gain of Re0.03 against the greenback.
On Thursday, the rupee had rupee settled at 276.85 against the dollar.
Internationally, the Japanese yen hit its strongest level in more than a month on Friday, buoyed by safe-haven flows due to a fresh bout of risk aversion that also sent US Treasury yields sharply lower, pushing the dollar to a nearly three-week trough.
The moves in the currency markets were driven by doubts over the AI spending boom even as Brent crude futures stay above $110 per barrel, suggesting concerns over economic growth outweighed inflation worries.
The yen strengthened 0.3% on Friday to 156.28 per US dollar, leading gains among major currencies. It was set for a 1% gain for the week, its strongest weekly rise since early September.
The dollar index, which measures the greenback against a basket of currencies, was at 101.52, after touching its lowest level since the beginning of the month at 101.44 on Thursday.
US 10-year Treasury yields hovered near a one-month low at 4.953%, after tumbling on Thursday when equities sold off on renewed concerns about the sustainability of the AI boom, burnishing the safe-haven appeal of sovereign debt.
While demand for safety is intensifying, the beneficiaries differ depending on the risk, OCBC analysts said.
AI jitters favour the yen, Middle East tensions support the Canadian dollar and Norwegian crown due to rising oil prices, while French fiscal stress benefits the Swiss franc, they said, adding that for the US dollar, AI had become an increasingly two-way macro risk.
Oil prices, a key indicator of currency parity, rose on Friday, with Brent crude touching its highest since early May, after Houthi attacks in Saudi Arabia stoked concern over further disruption to energy supplies from the Middle East where UAE authorities also reported an oil spill.
Brent crude futures gained $1.71, or 1.5%, to $114.99 a barrel by 1300 GMT, having earlier reached $115.16, the highest level since May 4. US West Texas Intermediate crude gained $1.80, or 1.8%, to $101.27.
Inter-bank market rates for dollar on Friday
BID Rs 276.82
OFFER Rs 277.02
Open-market movement
In the open market, the PKR lost 5 paise for buying and 6 paise for selling against USD, closing at 277.57 and 278.71, respectively.
Against Euro, the PKR gained 68 paise for buying and 57 paise for selling, closing at 310.55 and 313.55, respectively.
Against UAE Dirham, the PKR lost 1 paisa for buying and gained 1 paisa for selling, closing at 75.60 and 76.20, respectively.
Against Saudi Riyal, the PKR remained unchanged for both buying and selling, closing at 73.93 and 74.51, respectively.
Open-market rates for dollar on Friday
BID Rs 277.57
OFFER Rs 278.71