Intra-day update: rupee largely stable against US dollar

The Pakistani rupee remained largely stable against the US dollar, appreciating 0.03% during the opening hours of trading in the inter-bank market on Wednesday.

At 10:20am, the currency was hovering at 277.65, a gain of Re0.09 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 close to a three-month peak on Wednesday in a big week for macroeconomic data that could reveal the path for US monetary policy.

The Australian dollar edged closer to a three-month trough after some stickiness in inflation suggested a Reserve Bank of Australia interest rate cut is unlikely this year.

Mixed US indicators overnight, showing a loosening US jobs market but a confident consumer, provided little clarity on the outlook for Federal Reserve easing, allowing the greenback to drift lower with Treasury yields on Tuesday following a strong seven-year note auction.

Recently though, economic readings have pointed to a resilient economy, particularly for employment, spurring a paring back of bets on the pace of rate reductions.

The US dollar index, which measures the currency against six major rivals including the yen and euro, was little changed at 104.24, after reaching the highest since July 30 at 104.63 on Tuesday before finishing the day almost flat.

Oil prices, a key indicator of currency parity, stabilised on Wednesday on industry data showing a surprise drop in US crude and gasoline inventories, following two previous sessions of losses on the prospect of hostilities easing in the Middle East.

Brent crude futures gained 21 cents, or 0.3%, to $71.33 a barrel by 0002 GMT.

US West Texas Intermediate crude futures rose 22 cents, or 0.3%, to $67.43 per barrel.

US crude oil and fuel stocks fell last week, market sources said on Tuesday, citing American Petroleum Institute figures.

Crude stocks dipped by 573,000 barrels in the week ended October 25, the sources said on condition of anonymity. Gasoline inventories lost 282,000 barrels, and distillate stocks fell by 1.46 million barrels, the sources said.

This is an intra-day update