Rupee records gain against US dollar
- Settles at 276.70 against the greenback
The Pakistani rupee marginally gained against the US dollar in the inter-bank market, closing at 276.70. This occurred as the US dollar weakened globally amidst midterm election results and falling oil prices.
- Pakistani rupee's performance against major currencies.
- Global US dollar trends influenced by midterm elections.
- Impact of oil prices and geopolitical events on currency markets.
The Pakistani rupee continued its marginal gain against the US dollar in the inter-bank market on Wednesday.
The local unit closed the day at 276.70, a gain of Re0.01 against the greenback.
On Tuesday, the rupee had closed at 276.71 against the dollar.
Globally, a sweeping victory by Democrats in the US midterm elections sent the dollar lower on Wednesday, as investors weighed the prospect of tighter AI regulation and its potential drag on economic growth.
Several major currencies gained versus the dollar, with the euro and sterling trading at their highest levels in nearly two weeks and seven weeks, respectively.
Democrats captured majorities in both the Senate and the House, even prevailing in states that have long been conservative bastions, stoking fears that opposition to data centres may gather fresh momentum.
That also raised concerns about the potential hit to the US economy, given how much US growth has been tied to AI-related spending.
A slowdown in growth could dampen the dollar’s appeal and reduce the need for interest rate hikes, which typically support a currency.
The dollar index , which measures the US currency against a basket of six peers, fell to a one-month low and was last trading at 101.39.
The euro gained 0.53% to $1.1251, while the British pound rose 0.55% to $1.3485.
The yen and the Swiss franc , both safe-haven currencies, were also stronger. Against the Swiss franc , the dollar weakened 0.44% to 0.8169. It fell 0.17% against the yen, to 158.43 per dollar.
The 10-year Treasury yield dropped 1.7 basis points to 4.933%.
Oil prices, a key indicator of currency parity, were down more than $3 a barrel on Wednesday in volatile trading as investors awaited Washington’s next move in the US-Israeli war with Iran after President Donald Trump’s Republican Party lost control of Congress in midterm elections.
Brent futures were down $3.20, or 3.09%, to $100.40 a barrel at 1417 GMT. US West Texas Intermediate crude futures were down $3.01, or 3.13%, to $93.08.
Inter-bank market rates for dollar on Wednesday
BID Rs 276.70
OFFER Rs 276.90
Open-market movement
In the open market, the PKR gained 3 paise for buying and 19 paise for selling against USD, closing at 277.35 and 278.48, respectively.
Against Euro, the PKR lost 1.40 rupee for buying and 1.45 rupee for selling, closing at 311.37 and 314.23, respectively.
Against UAE Dirham, the PKR gained 2 paise for buying and remained unchanged for selling, closing at 75.58 and 76.18, respectively.
Against Saudi Riyal, the PKR gained 1 paisa for both buying and selling, closing at 73.92 and 74.44, respectively.
Open-market rates for dollar on Wednesday
BID Rs 277.35
OFFER Rs 278.48
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