Pakistani Rupee Gains Slightly Against US Dollar in Interbank Market
The Pakistani rupee gained ground against the US dollar on Thursday. In the inter-bank market, it appreciated by 0.09%. By 10 a.m., the rupee stood at 280.8, improving by Re0.25 against the greenback, according to the State Bank of Pakistan (SBP).
The local currency had closed at 281.05 on Wednesday. This steady gain shows cautious optimism in the market amid ongoing global uncertainties.
Global Factor
Globally, the US dollar moved higher against most major currencies. Traders awaited the delayed release of US consumer inflation data due on Friday. This anticipation affected currency movements.
Meanwhile, the Japanese yen weakened to a one-week low against the dollar. Investors expect a big stimulus package from Japan’s new Prime Minister, Sanae Takaichi. Her policies are expected to favor fiscal and monetary easing.
The British pound also faced pressure after data showed consumer inflation steady at 3.8% in the UK last month. This defied economists’ predictions for higher inflation.
As a result, traders increased the chances of the Bank of England cutting interest rates by December. The probability jumped from 46% to 75%, although it later eased to 61%.
The US dollar index, which measures the greenback against six major currencies, rose slightly by 0.05% to 98.979 as of early Thursday.
Affect Currency Trends
Oil prices rose sharply on Thursday, influencing
currency markets worldwide. Prices jumped about 2.5%, continuing gains from the previous day. This increase followed new US sanctions on Russian oil giants Rosneft and Lukoil over the Ukraine conflict.
Brent crude futures climbed $1.56 (2.49%) to $64.15 per barrel by early morning trading. Similarly, US West Texas Intermediate crude rose $1.53 (2.62%) to $60.03 per barrel.
Since oil prices often impact currency values, these gains could support the rupee’s strength. Market watchers will keep an eye on global developments and local policies to gauge future trends.
