Rupee registers gain against US dollar
- Settles at 276.67 against greenback
The Pakistani Rupee marginally gained against the US Dollar, closing at 276.67. This appreciation was influenced by international market dynamics, including US election results and global currency trends.
- US midterm election impact on the dollar.
- Global currency trends and central bank policies.
- Open market PKR exchange rates.
- Oil price movements and currency parity.
The Pakistani rupee continued its marginal gain against the US dollar, appreciating 0.01% in the inter-bank market on Thursday.
The local unit closed the day at 276.67, a gain of Re0.03 against the greenback.
On Wednesday, the rupee had closed at 276.70 against the dollar.
Internationally, the US dollar edged lower on Thursday in the aftermath of an overwhelming victory by Democrats in US midterm elections that cleared a major source of uncertainty and fuelled a rally in global equities.
The yen firmed after minutes of the Bank of Japan’s September meeting reinforced expectations for further interest rate hikes, while sterling held near a seven-week high ahead of a Bank of England policy decision expected to deliver another rate increase.
Democrats swept to sizable majorities in the Senate and House of Representatives, easing concerns about contested results and spurring gains in US Treasuries and equities around the world.
The dollar index, which measures the greenback against a basket of currencies, fell 0.06% to 101.41, after a 0.36% decline in the prior session. The euro was up 0.12% at $1.1241.
The yen strengthened 0.08% to 158.25 per dollar.
Despite the political shift in the US, expectations for the Federal Reserve’s interest rate path remained largely intact. Markets are pricing in an 81.2% chance for a rate increase of at least 25 basis points from the Fed at its December meeting, according to CME FedWatch, up from 77.4% in the prior session.
Oil prices, a key indicator of currency parity, rose nearly $3 on Thursday as investors weighed the future course of the US-Israeli war with Iran after President Donald Trump’s Republican Party suffered heavy losses in midterm elections this week.
Brent futures were up $2.94, or 3.11%, at $97.56 a barrel as of 1417 GMT, while US West Texas Intermediate crude futures rose $1.73, or 1.96%, to $89.85.
Inter-bank market rates for dollar on Thursday
BID Rs 276.67
OFFER Rs 276.87
Open-market movement
In the open market, the PKR gained 2 paise for buying and 1 paisa for selling against USD, closing at 277.33 and 278.47, respectively.
Against Euro, the PKR gained 5 paise for buying and 3 paise for selling, closing at 311.32 and 314.20, respectively.
Against UAE Dirham, the PKR gained 4 paise for buying and 3 paise for selling, closing at 75.54 and 76.15, respectively.
Against Saudi Riyal, the PKR gained 4 paise for buying and 2 paise for selling, closing at 73.88 and 74.42, respectively.
Open-market rates for dollar on Thursday
BID Rs 277.33
OFFER Rs 278.47
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