Rupee remains stable against US dollar

The Pakistani rupee remained largely unchanged against the US dollar in the inter-bank market on Wednesday.

At close, the currency settled at 277.73, a gain of Re0.01 against the greenback.

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, fell on Wednesday after industry data showed US crude inventories swelled more than expected, though crude futures were still up about 3% this week as traders factored in continuing conflict in the Middle East.

Brent crude futures dropped 73 cents, or 1%, to $75.31 a barrel by 0917 GMT.

US West Texas Intermediate crude futures shed 74 cents, also 1%, to $71.00 a barrel.