Intra-day update: rupee marginally strengthens against US dollar
- Currency hovers at 277.278 level in inter-bank market
The Pakistani rupee registered a marginal gain against the US dollar, appreciating 0.1% during the opening hours of trading in the inter-bank market on Friday.
At 10:30am, the currency was hovering at 277.95, a gain of Re0.28 against the greenback.
On Thursday, the rupee had settled at 278.23, according to the State Bank of Pakistan (SBP).
Globally, the US dollar rose to a 2 1/2-week high against major peers on Friday, on track for its best week in a month, amid bets that the Federal Reserve would cut interest rates next week but then take a patient approach to further reductions.
The US currency was also supported against the euro and Swiss franc following rate cuts at those central banks a day earlier, and versus the yen amid speculation the Bank of Japan will forgo a rate hike at its meeting next week.
The dollar index, which measures the currency against the euro, yen and three other rivals, ticked up to 107.05 for the first time since Nov. 26.
For the week, the index is up more than 1%.
Some softness in US producer price figures released overnight, despite a heated headline figure, kept market conviction high for a Fed cut on Dec. 18, while a rise in unemployment claims showed the job market gradually cooling in line with expectations.
Traders see an easing at the upcoming meeting as a certainty, but lay 21% odds on another one coming in January, according to CME’s FedWatch tool.
Oil prices, a key indicator of currency parity, inched lower on Friday as investors focused on a forecast of ample supply and shrugged off expectations of higher demand next year from Chinese stimulus measures, while eyeing another Federal Reserve interest rate cut next week.
Brent crude futures edged down 8 cents to $73.33 a barrel by 0125 GMT while US West Texas Intermediate crude was at $69.95 a barrel, down 7 cents.
This is an intra-day update
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