Key Takeaways
- The Pakistani rupee extended its gains against the US dollar in the interbank market.
- The local unit closed at 277.30, a gain of Re0.01 against the greenback.
- Internationally, the US dollar gained support as oil prices rose and risk appetite weakened.
The Pakistani rupee saw a marginal improvement against the US dollar in the interbank market on Tuesday, closing at 277.30, a gain of Re0.01 from the previous day's rate of 277.31.
The US dollar gained support on Tuesday, trading near a two-week high, as surging oil prices lifted Treasury yields and reinforced expectations of a Federal Reserve interest rate hike this week.
Markets now see a Fed hike on Wednesday as a near certainty, with CME’s FedWatch tool pricing in a roughly 93% chance of an interest-rate increase, which would be the first in more than three years.
The dollar index, which measures the greenback against a basket of currencies, was last at 99.55, while the euro was slightly weaker against the dollar at $1.1538, and sterling at $1.3494.
Oil prices, a key indicator of currency parity, rose more than 2% on Tuesday after attacks on Saudi Arabian energy infrastructure left the kingdom’s East-West pipeline offline, raising fears that damage to energy infrastructure and transport routes could take longer to repair.
Brent crude futures rose $2.5, or 2.37%, to $108.18 a barrel at 0813 GMT, while US West Texas Intermediate futures were up $2.46, or 2.43%, at $103.85 a barrel.
In the open market, the PKR gained 3.00 paisa for buying and 11.00 paisa for selling against USD, closing at 278.16 and 279.02, respectively.
Against Euro, the PKR gained 61.00 paisa for buying and 1.31 rupee for selling, closing at 319.99 and 322.63, respectively.
Against UAE Dirham, the PKR gained 3.00 paisa for buying and 11.00 paisa for selling, closing at 75.60 and 76.16, respectively.
Against Saudi Riyal, the PKR gained 6.00 paisa for both buying and selling, closing at 73.88 and 74.42, respectively.
