The Pakistani rupee continued its marginal gain against the US dollar, appreciating 0.01% in the inter-bank market on Thursday.
The local unit closed the day at 276.67, a gain of Re0.03 against the greenback.
On Wednesday, the rupee had closed at 276.70 against the dollar.
Internationally, the US dollar edged lower on Thursday in the aftermath of an overwhelming victory by Democrats in US midterm elections that cleared a major source of uncertainty and fuelled a rally in global equities.
The yen firmed after minutes of the Bank of Japan’s September meeting reinforced expectations for further interest rate hikes, while sterling held near a seven-week high ahead of a Bank of England policy decision expected to deliver another rate increase.
Democrats swept to sizable majorities in the Senate and House of Representatives, easing concerns about contested results and spurring gains in US Treasuries and equities around the world.
The dollar index, which measures the greenback against a basket of currencies, fell 0.06% to 101.41, after a 0.36% decline in the prior session. The euro was up 0.12% at $1.1241.
The yen strengthened 0.08% to 158.25 per dollar.
Despite the political shift in the US, expectations for the Federal Reserve’s interest rate path remained largely intact. Markets are pricing in an 81.2% chance for a rate increase of at least 25 basis points from the Fed at its December meeting, according to CME FedWatch, up from 77.4% in the prior session.
Oil prices, a key indicator of currency parity, fell for a fourth day on Thursday on expectations that the losses US President Donald Trump’s Republican Party suffered in Congressional elections this week may reduce the risk of further escalation of the US-Israeli war on Iran.
Brent futures fell 80 cents, or 0.85% to $93.82 a barrel as of 0426 GMT, while US West Texas Intermediate crude futures were down $1.2, or 1.36%, to $86.92.
Both benchmarks tumbled by more than 8% in the previous session to settle at their lowest since August 31.