Intra-day update: rupee strengthens against US dollar
- Currency hovers at 277-278 level against US dollar in inter-bank market
The Pakistani rupee recorded marginal improvement against the US dollar, appreciating 0.07% during the opening hours of trading in the inter-bank market on Wednesday.
At 10:20am, the currency was hovering at 277.55, a gain of Re0.19 against the US dollar.
On Tuesday, the rupee had settled at 277.74, according to the State Bank of Pakistan (SBP).
Internationally, the US dollar hovered at a 2-1/2-month peak on Wednesday as investors adjusted bets toward a gradual reduction of interest rates while keeping an eye on a close presidential election race.
The greenback has climbed for three weeks as expectation for aggressive rate hikes from the Federal Reserve has faded after a slew of upbeat economic data.
Markets now have a 91% chance priced in for a moderate quarter-basis-point cut in November, the CME FedWatch tool showed.
A month earlier, investors were split between bets for 50 basis points. That less dovish outlook for the Fed has helped buoy Treasury yields.
Oil prices, a key indicator of currency parity, dipped on Wednesday after industry data showed US crude inventories swelled more than expected, though declines were capped as the market watched diplomatic efforts in the Middle East after Israel continued attacks on Gaza and Lebanon.
Brent crude futures dipped 20 cents, or 0.3%, to $75.84 a barrel by 0330 GMT. US West Texas Intermediate crude futures shed 20 cents, or 0.3%, to $71.54 a barrel.
Crude futures settled higher in the two previous sessions this week. “The market continues to wait for Israel’s response to Iran’s missile attack,” ING analysts said on Wednesday, adding the price strength on Tuesday was possibly due to the lack of outcome from US Secretary of State Antony Blinken’s latest visit to Israel.
This is an intra-day update
Comments