Intra-day update: rupee stable against US dollar

The Pakistani rupee remained largely stable against the US dollar, appreciating 0.01% during the opening hours of trading in the inter-bank market on Thursday.

At 11am, the currency was hovering at 277.93, a gain of Re0.03 against the greenback.

On Wednesday, the rupee had settled at 277.96, according to the State Bank of Pakistan (SBP).

Internationally, the euro clung to its sharpest rise in four months on Thursday following hawkish remarks from a central bank policymaker, while the yen powered toward its strongest week in three months on growing bets Japan could hike interest rates in December.

The moves stalled the dollar’s resurgence ahead of what is likely to be thin trade through the rest of the week due to the US Thanksgiving holiday.

The moves, combined with what traders said was an ebbing in corporate dollar buying once they had satisfied month-end needs, sent the dollar broadly lower and the US dollar index dropped by nearly 0.8% overnight to sit at 106.13.

Overnight US yields fell, adding to downward pressure on the dollar, after data showed US personal consumption expenditure in line with expectations with a 0.2% monthly increase.

Oil prices, a key indicator of currency parity, edged lower in Asian trading on Thursday, after a surprise jump in US gasoline stocks ahead of the nation’s Thanksgiving holiday sparked worry over demand in the top consumer of the motor fuel.

Brent crude futures fell by 4 cents, or 0.1%, to $72.79 per barrel by 0220 GMT, while US West Texas Intermediate crude futures were a cent lower at $68.71 a barrel.

Trading is expected to be light due to US holiday.

This is an intra-day update