Rupee records marginal improvement against US dollar

The Pakistani rupee registered marginal improvement against the US dollar, appreciating 0.08% against the US dollar in the inter-bank market on Friday.

At close, the currency settled at 277.52, a gain of Re0.22 against the greenback.

On Thursday, the rupee had settled at 277.74, according to the State Bank of Pakistan (SBP).

The currency market is now seen as being stable after the Executive Board’s approval of the fresh bailout programme with the International Monetary Fund (IMF), and the subsequent receipt of the first tranche.

Internationally, the US dollar hung around a six-week high on Friday, set for its biggest weekly gain since April due to safe-haven demand on rising Middle East tensions.

Market activity is expected to be subdued ahead of US non-farm payrolls figures – due later in the day – which will help shape the Federal Reserve’s outlook for interest rates.

Data on Thursday showed the number of Americans filing new applications for unemployment benefits increased marginally last week, with the US labour market gliding at the end of the third quarter.

The dollar index, which measures the US unit versus six peers, was last at 101.92, not far from the six week high of 102.09 it touched on Thursday.

For the week, the index is up 1.5%.

Oil prices, a key indicator of currency parity, were subdued on Friday, but remained on track for strong weekly gains, as investors weighed the prospect of a wider Middle East conflict disrupting crude flows against a well-supplied global market.

Brent crude futures were flat at $77.55 a barrel, as of 0646 GMT.

US West Texas Intermediate crude futures were little changed at $73.65 a barrel.

Both benchmarks were headed for weekly gains of about 8%.