Intra-day update: rupee strengthens against US dollar

The Pakistani rupee registered marginal gain against the US dollar, appreciating 0.09% during the opening hours of trading in the inter-bank market on Friday.

At 10:20am, the currency was hovering at 277.53, a gain of Re0.26 against the US dollar.

On Thursday, the rupee had settled at 277.79, according to the State Bank of Pakistan (SBP).

Globally, the US dollar fell from two-month highs hit overnight versus its major peers after signs of weakness in the labour market boosted the case for quicker Federal Reserve rate cuts.

Despite that, the US dollar on Friday remained on track for a second straight weekly advance after surprisingly strong monthly payrolls figures last week prompted traders to take bets for a half-percentage-point cut at the Fed’s next policy meeting off the table.

The market’s interpretation of Thursday’s surge in initial jobless claims was complicated by an uptick in the consumer price index (CPI) the same day, which served as a reminder that restrictive monetary policy may be required to bring inflation under control.

The dollar index, which measures the currency against six peers, was flat at 102.84 as of 0111 GMT, but down 0.3% from 103.17 on Thursday which was its highest level since Aug. 15.

For the week, the index is on track for 0.39% advance, building on the previous week’s 2.06% surge.

Oil prices, a key currency indicator, eased on Friday after a rally the previous day, but prices remained set for a second straight weekly gain as investors weighed the impact of hurricane damage on US demand against any broad supply disruption if Israel attacks Iranian oil sites.

Brent crude oil futures fell 29 cents, or 0.4%, to $79.11 a barrel by 0430 GMT.

US West Texas Intermediate crude futures dropped 21 cents, or 0.3%, to $75.64 per barrel.

For the week, both benchmarks were headed for a 1%-2% gain.

This is an intra-day update