Rupee gains against US dollar
- Currency settles at 277.64 against the greenback in inter-bank market
The Pakistani rupee strengthened against the US dollar, appreciating 0.07% in the inter-bank market on Friday.
At close, the currency settled at 277.64, a gain of Re0.20 against the greenback.
On Thursday, the rupee had settled at 277.84, according to the State Bank of Pakistan (SBP).
In a key development, foreign exchange reserves held by the SBP increased by $18 million on a weekly basis, clocking in at $11.04 billion as of October 18, data released on Thursday showed.
Total liquid foreign reserves held by the country stood at $16.02 billion. Net foreign reserves held by commercial banks stood at $4.98 billion.
Internationally, the US dollar’s rally came to a pause on Friday after it surged to a three-month high earlier this week, underpinned by tempered expectations of aggressive Federal Reserve rate cuts and as market bets for a possible return of Donald Trump as US president ramp up.
Against the US dollar, the euro last bought $1.08225, some distance away from its low of $1.076125 hit earlier this week.
Still, the single currency remained on track for a 0.4% weekly loss.
Data on Thursday showed euro zone business activity stalled again this month, though the contraction in Germany - Europe’s largest economy - was less steep than the previous month.
Oil prices, a key indicator of currency parity, nudged higher on Friday and are on track for a weekly gain of more than 1%, as tensions in the world’s top oil-producing region, the Middle East, and a restart in Gaza ceasefire talks in the coming days kept traders on edge.
Brent crude futures climbed 31 cents, or 0.4%, to $74.69 a barrel by 0642 GMT while US West Texas Intermediate crude was at $70.48 a barrel, up 29 cents, or 0.4%.
Oil traders are waiting for Israel’s response to a missile attack by Iran on Oct. 1 that may involve hitting Tehran’s oil infrastructure and disrupt supplies, although reports said Israel would strike Iranian military, not nuclear or oil, targets.
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