Intra-day update: rupee gains further ground against US dollar
- Currency hovers at 277-278 level in inter-bank market
The Pakistani rupee improved further against the US dollar, appreciating 0.08% in the inter-bank market on Friday.
At 10:30am, the currency was hovering at 277.70, a gain of Re0.21 against the US dollar.
On Thursday, the rupee had settled at 277.91, according to the State Bank of Pakistan (SBP). The last time the rupee had closed below 278 level was on April 9, 2024.
The currency market is now factoring in the International Monetary Fund (IMF) Executive Board meeting that is scheduled to take Pakistan’s 37-month Extended Fund Facility (EFF) of about $7 billion on its agenda on September 25.
Globally, the US dollar had its own problems as markets priced in more rapid US rate cuts.
The US dollar was up 1.4% for the week at 142.84 yen, though off an overnight high of 143.95.
That dovish outlook has bolstered hopes for continued US economic growth and sparked a major rally in risk assets. Currencies leveraged to global growth and commodity prices also benefited, with the Aussie topping $0.6800.
The US dollar index was stuck at 100.69 and just above a one-year low.
Oil prices, a key indicator of currency parity, which were little changed in early Asian trade on Friday, were on track to end higher for a second straight week following a large cut in US interest rates and declining global stockpiles.
Brent futures, which were trading 19 cents or 0.3% lower at $73.69 a barrel at 0027 GMT on Friday, gained 4.3% this week.
US crude, which was up 6 cents at $72.01 a barrel, has registered weekly gains of 4.8%.
The benchmarks have been recovering after they fell to near three year-lows on Sept. 10, and have registered gains in five of the seven sessions since then.
This is an intra-day update
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